Tech is 'the place to be,' but wait for a pullback: Strategist
With Tesla (TSLA) set to kick off "Magnificent Seven" earnings, Slatestone Wealth chief market strategist Kenny Polcari joins Seana Smith and Madison Mills to share his perspective heading into the megacap results. The strategist agrees that the market may be overvalued, and investors could benefit from a pullback. "Is the market stretched? Sure, it's stretched. Should it pull back? Of course, it should. Actually, as a chief market strategist and a wealth manager, I want to see the market pull back because I can't put money to work," Polcari says. "I don't want to chase stretched names and stretched sectors. I'm actually waiting for the market to pull back," he says, adding, "I do suspect that we will see a pullback, and I welcome it." Looking at the Magnificent Seven specifically, Polcari says "AI is going to absolutely continue to crush it." He nods to a report from Dan Ives "talking about now the second derivative of AI." The strategist says the artificial intelligence trade will move beyond the Magnificent Seven to other names like Cisco (CSCO), SAP (SAP), IBM (IBM), and Oracle (ORCL). "Tech is the place to be. I don't say you should chase it up here, let it pull back, and then jump in." To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Naomi Buchanan.
