Long-term investors should now start looking for opportunities in the tech space, says Sylvia Jablonski. She’s the Chief Investment Officer at Defiance ETFs.
The case for buying the dips in quality tech names
It’s an interesting call since the central bank has made it clear that rates are likely to go further up in the balance of 2022, which tends not to be a supportive environment for the tech stocks.
Jablonski also agrees that there might be more pain in the near-term, but those playing the “long game”, she added, will be fine if they buy the dips and dollar cost average their positions in the tech stocks.
Elaborating her thesis this morning on CNBC’s “Squawk Box”, she said:
I think the story for automation remains strong. A lot of the companies will continue to invest in technology to replace what they can’t find in a person with a robot. You need it for EV, 5G and Cloud Cybersecurity.
What tech stocks in particular does she like?
The tech-heavy Nasdaq 100 index is currently down more than 25% for the year.
Still, Jablonski is not recommending throwing the capital into these stocks indiscriminately. She’s behind only the quality names like Google, Amazon, Microsoft, and Apple Inc that’s scheduled for a product launch event on September 7th.
I’m looking at the old tech generals. I don’t mind holding Apple Inc for a decade. I don’t think most people do. So, you can always look for those opportunities if you have cash on the side.
For diversification purposes, Jablonski likes “healthcare” primarily for a stable dividend. Names like Merck, UnitedHealth, and CVS, she noted, were worth considering.
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