A top strategist calls the tech slump a great buying opportunity.
According to John Stoltzfus of Oppenheimer Asset Management, the group will rebound as it plays a key role in reopening the economy. He cited the critical support tech companies provide to consumers and all parts of America’s business.
“We actually see the rollover on the Nasdaq as an opportunity to expand positions that may have been a little more expensive a few days ago,” the company’s chief investment strategist told CNBC’s “Trading Nation” on Wednesday.
The tech-heavy Nasdaq fell 2.7% to close at 12,997.75. The move came when the benchmark yield on 10-year Treasury bills rose towards 1.5%. Rising yields have put pressure on the index as they cap growth companies’ earnings multiples and signal inflation.
However, Stoltzfus is not worried.
“Without a doubt, we believe that some of the inflation we see in economic data is really due to the fact that we disrupted supply chains,” he said. “They are usually related to the Covid pandemic.”
Stoltzfus, who has been on Wall Street since 1983, isn’t just technically optimistic. He also likes groups related to economic recovery such as finance, consumer discretionary and materials.
For the broader S&P 500, Stoltzfus has a year-end target of 4,300, up 13% from Wednesday’s close of trading.
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