Investors should buy technology stocks after their months long sell-off entered bear market territory, according to Fundstrat.
“Investors deem Technology ‘done’ but we think Technology demand will accelerate [over the] next few years.”
These are the three reasons why Fundstrat’s Tom Lee thinks investors should buy technology stocks.
Technology stocks went from most loved in years of the COVID-19 pandemic to now the most heavily sold, based on the underlying sector performance of the stock market.
The Nasdaq 100 fell into a bear market in 2022, dropping about 30% from its record high, which is a larger decline than the index experienced in March 2020. A combination of lofty valuations, a pull forward in demand, and rising interest rates helped fuel the months-long decline in the sector, among other factors.
But investors should take advantage of the decline and start buying the tech sector, according to a