It’s a shortened trading week with Easter next weekend, but there are a few major catalysts ahead. Meanwhile, though tech stocks haven't been spared by recent selling, pencils are being sharpened, writes Amber Kanwar, host of the In the Money with Amber Kanwar podcast.
Additional US troops have arrived in the Middle East and the question of a ground invasion is still looming. Secretary of State Marco Rubio said the war should only last another few weeks and doesn’t require ground invasion. There are no clear signs about how that will happen. Indeed, fighting has only accelerated. President Trump has also threatened to “take the oil” from Iran.
But the game now is about calling the bottom. Morgan Stanley's Michael Wilson just said we are “getting closer” to the end of the market sell-off. Barron's this past weekend was full of ideas: United Parcel Service Inc. (UPS), Dollar General Corp. (DG), and Berkshire Hathaway Inc. (BRK.B) were among the names positively touted.
As for tech, Fundstrat Head of Research Tom Lee said in a note to clients that “the entire premium that tech stocks have built up has been erased, and that to me, doesn’t make sense.” Here is a chart showing how the premium tech stocks enjoyed relative to the S&P 500 Index (^SPX) has been completely wiped out. Added Lee: “All this consistent earnings growth, increasing share of the economy, AI — all that’s been erased. I think that’s why the risk-reward for tech is so good.”
