Truist's chief strategist just downgraded the tech sector amid its most extreme outperformance since 2002. Here are 2 sectors he recommends investing in instead.

businessinsider.com07-01

Truist downgraded the tech sector from overweight to neutral after it outperformed the market by 11% last month.Chief Strategist Keith Lerner is still bullish on tech but believes it's overvalued ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2448596622?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-07-01 16:30","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2448596622","market":"us","top_or_hot":-1,"title":"Truist's chief strategist just downgraded the tech sector amid its most extreme outperformance since 2002. Here are 2 sectors he recommends investing in instead.","media":"businessinsider.com","content":"<div>\n<p>Truist downgraded the tech sector from overweight to neutral after it outperformed the market by 11% last month.Chief Strategist Keith Lerner is still bullish on tech but believes it's overvalued ...</p>\n\n<a href=\"https://www.businessinsider.com/truist-downgrade-tech-sector-overweight-neutral-overvalued-communication-services-utilites-2024-7\">Source Link</a>\n\n</div>\n","source":"businsider_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Truist's chief strategist just downgraded the tech sector amid its most extreme outperformance since 2002. Here are 2 sectors he recommends investing in instead.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTruist's chief strategist just downgraded the tech sector amid its most extreme outperformance since 2002. Here are 2 sectors he recommends investing in instead.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-01 16:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.businessinsider.com/truist-downgrade-tech-sector-overweight-neutral-overvalued-communication-services-utilites-2024-7><strong>businessinsider.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Truist downgraded the tech sector from overweight to neutral after it outperformed the market by 11% last month.Chief Strategist Keith Lerner is still bullish on tech but believes it's overvalued ...</p>\n\n<a href=\"https://www.businessinsider.com/truist-downgrade-tech-sector-overweight-neutral-overvalued-communication-services-utilites-2024-7\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SPXU","symbol_name":"三倍做空标普500ETF","start_time":0,"source_url":"https://www.businessinsider.com/truist-downgrade-tech-sector-overweight-neutral-overvalued-communication-services-utilites-2024-7","article_id":"2448596622","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2448596622","pubTimestamp":1719822603,"sourceInfo":{"source_id":"businsider_highlight","name":"Business Insider"},"weMediaInfo":null,"summary":"Truist downgraded the tech sector from overweight to neutral after it outperformed the market by 11% last month.Chief Strategist Keith Lerner is still bullish on tech but believes it's overvalued righ","collect":0,"end_time":0,"defaultTopTitle":"businessinsider.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SPXU":"三倍做空标普500ETF","BK4582":"ESG ETF-MSCI","XTL":"SPDR标普电信ETF基金","SPY":"标普500ETF","OEF":"标普100指数ETF-iShares","IYZ":"电信业ETF-iShares","VOO":"Vanguard标普500ETF","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","IVV":"标普500指数ETF","BK4504":"桥水持仓","XLU":"公共事业指数ETF-SPDR","FDN":"First Trust Dow Jones Internet I","SDS":"两倍做空标普500ETF","BK4581":"高盛持仓","UPRO":"三倍做多标普500ETF","BK4559":"巴菲特持仓","BK4550":"红杉资本持仓","BK4588":"碎股","SH":"标普500反向ETF","OEX":"标普100",".SPX":"S&P 500 Index","BK4561":"索罗斯持仓","SSO":"两倍做多标普500ETF","VPU":"Vanguard Utilities ETF"},"translate_title":"Truist的首席策略师刚刚下调了科技行业的评级，因为该行业的表现最为出色。以下是他建议投资的两个行业。","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"IYZ":1,"XTL":1,"XLU":1,"VPU":1,"VOO":0.69,"FDN":0.69,"SPY":0.69,"OEX":0.6,"UPRO":0.6,"SSO":0.6,"SPXU":0.6,"SH":0.6,"SDS":0.6,"OEF":0.6,".SPX":0.6,"IVV":0.6,"ESmain":0.6},"content_text":"Truist downgraded the tech sector from overweight to neutral after it outperformed the market by 11% last month.Chief Strategist Keith Lerner is still bullish on tech but believes it's overvalued right now.Lerner recommends investing in communication services and utilities instead.After Big Tech's meteoric rise in the stock market, valuations may be coming back down to earth.That's the concern of Truist's Chief Strategist and CIO Keith Lerner, at least. In a note last Friday, Lerner downgraded the firm's rating on the technology sector from overweight to neutral as names like Nvidia, Apple, and Google continue to drive the sector to its most extreme outperformance in decades.The stock market is incredibly narrow, with just a few mega-cap tech stocks driving the market rally.Overall, the tech sector has risen by roughly 40% since November 2023. That's about 16 percentage points higher than the S&P 500 in the same timeframe. The sector has outperformed the S&P 500 by around 11% in the last month, the highest level since 2002.According to Lerner, tech valuations are overheating in the short term, fueled by investor optimism. The tech sector's forward P/E has increased 19% just since May 1st of this year, jumping from 26x to 31x. These soaring valuations seem to be outpacing earnings growth, making now an unideal time for investors to buy in.\n                                Related stories\n                              Tech stocks are performing similarly to how they did last year, as seen in the chart below. If they continue following the same trajectory, they're likely to pull back in the next few months before rebounding again.Investors shouldn't be concerned about a tech bubble, though. Compared to the height of the dot-com bubble, when tech stocks outperformed the S&P 500 by 253%, today's 44% outperformance seems modest.Despite the downgrade, Lerner emphasized that Truist is still bullish on tech for the long term. He believes that AI will be a durable driver of growth in the sector going into the future.Lerner is optimistic that there will be new opportunities to bet on tech outside the Magnificent Seven going forward.\"There will likely be a better opportunity to deploy capital in a meaningful way, and we will be looking for a better entry point to upgrade the sector in the future,\" Lerner wrote in the note.After downgrading tech, Truist is shifting its focus on seeking value below the market's surface. Lerner is bullish on communication services and utilities.Both of these sectors are indirectly benefiting from the AI boom. Telecommunication companies are benefiting from government initiatives to invest in the 5G network infrastructure necessary for training AI models. Utilities have received a boost from surging demand as data centers consume massive amounts of power.Investors can gain exposure to these sectors through funds like the SPDR S&P Telecom ETF (XTL), iShares US Telecommunications ETF (IYZ), the Utilities Select Sector SPDR Fund (XLU), and Vanguard Utilities Index Fund ETF (VPU).","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2448596622"}