Aashika Suresh
4 min read
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Polcari noted in an interview that consumer discretionary, staples, utilities, and financials were among eight of the 11 S&P 500 sectors that gained on Monday even as technology sold off.
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Meanwhile, the market strategist said that as the market is testing a “reset,” the Nasdaq could slip to 24,000.
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He added that the overall market rotation is “very healthy” as there is no evidence of a massive, all-market selloff.
Even as volatility in the technology sector has the markets making wild swings, Kenny Polcari, Partner and Chief Market Strategist at SlateStone Wealth, believes that investors are finding stability and opportunity elsewhere.
In an interview with Schwab Network on Tuesday, Polcari noted that despite continued pressure on the technology sector, consumer discretionary, staples, utilities, and financials were among eight of the 11 S&P 500 sectors that gained on Monday.
“And so there’s this move out of tech, but into other parts of the market. Investors are finding stability and opportunity,” he said.
Selloff In Tech Names Is An Opportunity, Polcari Says
Meanwhile, the market strategist said that as the market is testing a “reset,” the Nasdaq could slip to 24,000, which is about 5% lower than current levels.
He noted that while some individual stocks are “already well into bear market territory,” with some technology names down more than 20%, it has created a buying opportunity, “especially in some of the bigger, high-quality names that are getting really punished just because there’s this sense that maybe large asset managers are trying to reduce some of their exposure to tech, and so they just sell everything to bring everything in line.”
Polcari named Micron Technology (MU) as one of the top long-term picks, despite its volatility. “I think MU long term is a name I like. I own it. The firm owns it. I think you have to be willing to put up with the volatility because it’s happened multiple times,” he said, adding that “if you’re taking a long-term view, I think it’s a name that you have to have.”
Polcari also said that Apple Inc. (AAPL) was “priced to perfection,” as its quarterly revenues soared to over $114 billion despite missing margins by one percentage point. “Because look, if you look at what’s happened to Apple over the last month, while tech was under pressure, Apple’s actually making new highs, right? And so this pullback, I’m not really surprised by it. But I’m not selling my Apple,” he said.
