Amid growing macroeconomic concerns and a hawkish Federal Reserve outlook, Wedbush analysts have urged investors to increase their investments in technology stocks, highlighting the imminent proliferation of AI and an anticipated $1 trillion tech spending over the next decade as key motivators.
Their advice comes at a time when Wall Street is showing signs of apprehension, evidenced by a rise in the 10-year US Treasury yield and a 7% dip in the Nasdaq 100 since July. Despite this, he advises bullish investors to disregard the panic induced by bearish investors emerging from hibernation mode and to concentrate on acquiring premium tech stocks.
The analyst predicts favorable outcomes from the Federal Reserve's planned interest rate cuts in 2024, a robust tech earnings season, and a potential economic soft landing. Although tech stocks often bear the brunt during periods of macroeconomic fears and Federal Reserve jawboning, they recognize these periods as opportunities to buy top-quality growth tech stocks.
Among their preferred picks are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Palo Alto Networks (NASDAQ:PANW), Zscaler (NASDAQ:ZS), MongoDB (NASDAQ:MDB), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), and Meta (NASDAQ:META). Wedbush anticipates a significant rebound in the tech sector's growth in 2024 due to trends in AI, cybersecurity, and cloud computing. This perspective offers an alternative view for investors who might be wary of the current market conditions.
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