“For the first time in a long time, this is a stock market.”
Quint Tatro
investment director, Joule Financial
Some investors may want to take advantage of the technology’s decline, Delano Saporu, CEO and senior advisor at New Street Advisors Group, said Wednesday.
If yields continue to rise, despite the Fed’s relatively pious stance, technology stocks will face “short-term pressures as the market tries to figure out what’s next,” Saporu said. “In the long run, I think it will be.”
His most important choices in the group were Microsoft and Apple, the two largest weights in the S&P technology sector.
“In the long run, we will be in a good position,” he said. “So if you’re a long-term investor, this is an opportunity to get some kind of lower valuations and I think in the long run, we’ll see that technology games grow more.”
Saporu was also looking for actions that could see “the back winds due to demand” – the airline that plays Delta and United Airlines said in a previous email to CNBC – and the video game and virtual reality industry.
“I want to see … what happens to cryptocurrency games” and non-fungible chips, the digital collections commonly known as NFTs, as video and virtual reality companies seek to integrate them into their strategies, a said Saporu.
This market environment has become particularly good for stockholders, Quint Tatro, investment director of Joule Financial, said in the same “Trading Nation” interview.
“For the first time in a long time, this is a stock market,” he said, adding that while Big Tech could remain under pressure as rates rise, “there is an incredible opportunity to identify other sectors and actions”.
“We would actually be sellers of Apple and Microsoft,” Tatro said. “Those … we still see them as home plays and we would be a special buyer of Facebook, but also Google as a kind of reopening play and an advertisement as small businesses seek to truly regenerate. that increase and even to operate the respective showcases. “
Although often combined with technology, Facebook and Google Alphabet are the largest players in the S&P communications services industry.
Tatro also had his eyes on a less visible profession.
“I really think investors need to look at a little-known sector that we’ve lost sight of until recently, and that’s the stuff,” he said.
Material stocks have risen by about 6% in the last month and just over 8% so far.
“Specifically, I think industrial metals are very, very interesting here,” Tatro said. “We really like some steel parts: Commercial Metals, CMC, as well as Reliance Steel. These are names that have exceptional earnings growing here in the coming years, especially with … the kind of reflection and global growth story back on track, and they have exceptional balance sheets and sell at real value. “
Disclosure: New Street Advisors Group, Joule Financial, Delano Saporu and Quint Tatro own shares in Apple and Microsoft. Joule Financial and Quint Tatro own shares of Alphabet, Facebook, Commercial Metals and Reliance Steel.
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