Lost your password?
Don't have an account? Sign Up

Tech stock rallies , Meta leads the way!

Results this week from mega-cap tech stocks have largely given extra legs to the sector’s run-up.

Meta Platforms, which posted its first sales increase in nearly a year, is now the best performer in the S&P 500 this year, up 98%. The NYSE Fang+ index has gained 37%.

Tweet on tech stocks

Factset chart

But Jon Bell, a fund manager at Newton Investment Management, is steering clear. U.S. tech companies with huge market valuations don’t meet the dividend-yield requirement for entry into his income-focused portfolio.

Mr. Bell says investors are sending tech stocks higher on a mistaken belief that the Federal Reserve will soon lower interest rates. The central bank will stay in inflation-fighting mode even as economic growth slows, according to Mr. Bell, who says that favors shares in consumer-staple, healthcare and utility companies as well as non-bank financial firms.

“I haven’t really seen anything…that suggests the optimistic idea that rates will be aggressively cut in the third or fourth quarter of this year,” Mr. Bell said.


Image: Tech