It’s not a given that all of the beaten down growth tech stocks will eventually recover, Eric Jackson warned on a CNBC interview this evening.
10-year yield came down a little on Thursday
The core PCE price index for May came in at a lower-than-expected 4.7% on Thursday. Consequently, the 10-year yield sunk to around 3.0% that is usually seen as a positive for the tech space. Still, on “Closing Bell: Overtime”, the founder of EMJ Capital said:
I think it’s fair to say that we are not going to snap back to all-time highs or anything like that. There’s obviously been a lot of damage done and a lot of names in growth tech are probably never going to recover.
U.S. tech companies are scheduled to report their quarterly earnings in a couple of weeks. Ahead of results, the tech-heavy Nasdaq Composite continues to struggle about 30% down for the year.
Investors aren’t excited about tech stocks in H2
Also on Thursday, the “CNBC Delivering Alpha Quarterly Stock Report” said only about a 3.0% of the U.S. investors saw any meaningful upside in the tech stocks in the back half of the year.
Interestingly, though, Jackson is all for selectively investing in quality growth tech names that have already priced in a lot of bad news.
What makes me hopeful about investing in tech is that they have been beaten down a lot, specifically the growth tech names; something so bad it has nowhere to go but up in the second half of the year.
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