With large cap technology stocks outperforming during the pandemic, one strategist warns “tech has been looking for an excuse to sell off.”
“This doesn’t mean large cap tech has to unleash a selling wave, but I think there is an excuse out there looking to sell some tech,” Paul Schatz, president and chief investment officer at Heritage Capital told Yahoo Finance’s The First Trade.
“It’s not so bad … if they go sideways, that would be healthy for a while” said Schatz, adding they’ve “got to catch up with the fundamentals.”
GM) swing to a loss for its second quarter, though the loss was not as bad as what wall street was expecting. Shares of GM opened the session higher this morning and then dipped into the red.’ data-reactid=”26″>On Wednesday General Motors (GM) swing to a loss for its second quarter, though the loss was not as bad as what wall street was expecting. Shares of GM opened the session higher this morning and then dipped into the red.
“The auto stocks trade like most of the other super sensitive cyclical stocks,” said Schatz.
“They’ve got a headwind in that we don’t know what’s going to happen with a congressional package,” he said. “I don’t think the economy will fully recover … I think you’ve got years to come, and I don’t think we see unemployment at the levels we saw in January, in my lifetime.”
Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre‘ data-reactid=”34″>Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre
Tesla’s most bullish analyst sets a Street-high price target of $2,322‘ data-reactid=”38″>Tesla’s most bullish analyst sets a Street-high price target of $2,322