The S&P 500 index hadn’t seen a first half this bad since 1970. But the balance of 2022, as per the CEO of Defiance ETFs, will likely be a very different story.
10-year is now back under 3.0%
According to Sylvia Jablonski, investors are finding the courage to hop back into the tech stocks now that the 10-year has slid back under 3.0%. This morning on CNBC’s “Squawk Box”, she said:
I think investors are starting to feel now that going into the market at this stage is not necessarily catching a falling knife. It’s probably a reasonable time to scoop up some of the quality tech names at a reasonable price.
Jablonski, however, agreed that the about-to-start earnings season will ultimately determine the market direction. Weakness there could just as easily wipe the recent bounce back.
Diversify beyond the tech stocks
Interestingly, she doesn’t recommend shopping only in the tech space. The beaten down, quality names across a bunch of sectors, according to Jablonski, are worth owning now. She noted:
It’s a good time to start diversifying, looking at financial names that’ve been killed, tech stocks, putting on some defensive names and dollar cost averaging because longer term, this will play out. These are great opportunities almost across all sectors.
She also expects commodity prices and the inflationary pressures at large to ease in the back half of 2022, further paving the road to a sustainable rally. IXIC is still down more than 25% year-to-date.
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