Now is the time to selectively add high-quality, beaten down tech stocks to your investment portfolio, says Jeff Kilburg. He’s the Chief Investment Officer at Sanctuary Wealth.
Why does Kilburg remains constructive on tech?
His confidence in the tech space amidst fears of an aggressive Fed is attributed to the 10-year Treasury note. Speaking with CNBC’s Dominic Chu this morning on “Worldwide Exchange”, Kilburg said:
The 10-year note is the beacon, the guiding light. It went from 1.53% at the start of the year all the way up to 3.49%. As we see it come back down, currently at 3.21%, it’ll allow investors to come back into this massive repricing.
He expects the 10-year to sit at 3.0% or below in the fall of 2022. The tech-heavy Nasdaq Composite is down nearly 30% for the year.
Kilburg reveals his favourite tech stock
A name that particularly pops out to him within technology is Palo Alto Networks Inc (NYSE: PANW) that reported strong results for its fiscal Q3 last month and offered upbeat guidance for the full year. Kilburg noted:
The darling we own in our essential 40 portfolio is PANW. I think you have to be very specific and own sub-sectors of technology. Own it in a prudent, equal-weighted manner. This is a bottoming process. You have to allocate here.
The stock is down more than 20% versus the start of the year. Other beaten down tech names he likes here include Intel and Oracle. Kilburg disagrees that the U.S. economy is headed into a recession.
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