Stick with tech stocks or miss some big gains, says this analyst

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Need to Know: Extreme contrarian move flashes bullish sign for tech stocks

An ECB meeting, Fed minutes, U.S. inflation data and an emergency EU summit on Brexit are all lined up for investors . But this may all be a sideshow for Friday’s earnings and to be sure, after another IMF global growth downgrade and fresh trade tensions between the U.S. and Europe have dinged sentiment.

Our call of the day, from Daily Wealth blogger and Stansberry Research analyst, Steve Sjuggerud, says investors may be losing their nerve over tech stocks at precisely the wrong moment, and stand to miss out on more big gains. “As the bull market continues, traders will pile back into U.S. stocks. That’ll cause a frenzy of higher prices. It’s a virtuous cycle that will fuel the Melt Up. causing prices to rise higher than anyone could imagine,” he said. “And when it does, tech stocks will be big winners.”

The buzz Apple AAPL, -0.30% is down after a downgrade from HSBC, which cut it to reduce from hold, saying it will take time for the tech group’s services unit to deliver returns.

 

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