Markets liquidated on Tuesday after a surge in yields hit tech stocks.
Here’s what five experts have to say about stocks now.
Tom Lee, Fundstrat’s head of research, said the noise from Washington, DC, which contributed to investor nerves, was not a deal breaker for the markets.
“I know investors don’t like it when there is political turmoil in Washington, but anyone needs to look at the past 30, 50, 100 years and then realize that when Washington plays hard, this is no time to panic on stocks. I don’t want to say it’s a guarantee, but it’s almost always been a great buying opportunity. So I think there has been a lot of damage to the growth, technology trading, and technical aspects of S&P, but for me, this just looks like a precursor to a consolidation before a big bullish move. “
Stephen Weiss, founder of Short Hills Capital Partners, can’t find many positives in this market right now.
“My point of view on the market has been pretty consistent, I just don’t see the positive catalysts going forward. I see a lot of negative catalysts, but I have a hard time thinking of anything positive. And let me go over some of them. – First of all, trading Retailer, as we see in the flows, has stopped buying the dips the same way they did last year. That’s number 1. No. 2, supply chain problems have worsened, labor problems have worsened And when you see that trickle down to companies, and some have already had earnings down … because you’ve already gone through the post-pandemic momentum, you’ll see margin squeeze across virtually every sector, maybe not energy in this one. right now, but across most of the other industries, plus it has a performance that keeps going up. “
Chris Grisanti, chief equity strategist at MAI Capital Management, said developments that are seen as negative are actually positive for the markets.
“I’d be a stock buyer here and I think what we’re doing is coming to the end of a delta-induced slowdown, and I think it’s the end because we’re starting to see some things that people are taking as negatives, for example , Oil is rising, interest rates are rising, but that is not a mistake. It is a characteristic of a growing economy. And of course, does anyone love higher rates? Not necessarily, but they are a by-product of a growing economy. growing economy and that economy continues to grow next year, I think we’ll be fine and I’ll keep buying stocks. “
Jim Breyer, founder and CEO of Breyer Capital, continues to bet on technology.
“I don’t do much of the sell-off [Tuesday]But for the past two years, when mega-cap tech stocks have sold significantly, I’m a buyer. And the reason is that they are also leaders in all next-generation technologies, be it artificial intelligence, AR / VR, quantum communications, and computing. Alphabet, Microsoft, Apple, these are the best companies in the world. So I continue to believe that they will continue to get better results over the next three to five years. “
Dan Niles, founder and portfolio manager of the Satori Fund, sees this setback as a readjustment of expectations.
“Don’t forget that a lot of tech companies benefited from the global pandemic last year – they streamed more movies, bought more stuff through e-commerce, etc. And so there was massive uptake during that time period. And now what you’re seeing is that streaming companies don’t have forecasts, e-commerce companies don’t have forecasts. “