Yahoo Finance Why one top strategist is bullish on tech even with lingering trade worries
Technology stocks are bearing the brunt of the latest escalation of trade tensions between the U.S. and China, but that shouldn’t get in the way of the sector’s rosy outlook.
That’s the assessment from Mary Ann Bartels, Bank of America Merrill Lynch’s head of ETF strategy.
“We’re very big on digital and the digital revolution,” Bartels told Yahoo Finance. “If you just look at a two-year-old child, they’re already using technology. Technology is going to be implemented through everyone’s life in everything that they use.”
On Monday, the S&P 500 (^GSPC) fell 0.67%, but the tech heavy Nasdaq fell a much deeper 1.46%. This comes in part from the U.S. raising tariffs on various imports from China earlier this month.
“We think this volatility and brinkmanship is bringing opportunity to investors to get back into the market,” Bartels added. “Many of them did not buy the market when we had a bear market from October to December and they kind of missed the rally at the beginning of the year. We think this is the entry point to get back in.”
While the jury’s out on whether the latest trade stall will lead to a full blown 10% correction, according to Bartels, the S&P 500 is already down roughly 3% since May 1. The S&P Technology Sector (XLK) is down just over 6% since the start of May.
Should a trade deal with China come to fruition, Bartels sees the S&P 500 surging to record highs.
Scott Gamm is a reporter at Yahoo Finance. Follow him on Twitter @ScottGamm.
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