Investors should pile into high-growth and mega-cap tech stocks over the second half of this year because of the looming threat of a recession, according to a top Citigroup strategist.
Stuart Kaiser said Monday that he believes that the US economy is barreling towards an economic slump – but that environment"should be relatively favorable to tech", with limited returns available elsewhere on the stock market. "You've got very high cash yields, you've got recession risks kind of in the background, and that's the main driver of people wanting to be in large-cap tech and growth stocks," Kaiser, who is Citi's head of US equity trading strategy, told"Essentially, there's a scarcity of growth and people are willing to pay a premium to be in them," he added.