Now is the time to selectively add high-quality, beaten down tech stocks to your investment portfolio, says Jeff Kilburg. He’s the Chief Investment Officer at Sanctuary Wealth.
Why does Kilburg remains constructive on tech?
The 10-year note is the beacon, the guiding light. It went from 1.53% at the start of the year all the way up to 3.49%. As we see it come back down, currently at 3.21%, it’ll allow investors to come back into this massive repricing.
He expects the 10-year to sit at 3.0% or below in the fall of 2022. The tech-heavy Nasdaq Composite is down nearly 30% for the year.
Kilburg reveals his favourite tech stock
A name that particularly pops out to him within technology is Palo Alto Networks Inc (NYSE: PANW) that reported strong results for its fiscal Q3 last month and offered upbeat guidance for the full year. Kilburg noted:
The darling we own in our essential 40 portfolio is PANW. I think you have to be very specific and own sub-sectors of technology. Own it in a prudent, equal-weighted manner. This is a bottoming process. You have to allocate here.
The stock is down more than 20% versus the start of the year. Other beaten down tech names he likes here include Intel and Oracle. Kilburg disagrees that the U.S. economy is headed into a recession.