Doug Ramsey, Chief Investment Officer of the Leuthold Group, says tech looks attractive here.
While stocks may be down this week, there’s one sector that’s more attractive than others, says one market veteran. Doug Ramsey, Chief Investment Officer of the Leuthold Group, believes tech is due for a rally in the coming months.
Stocks are down over 1% since Monday as measured by the benchmark S&P 500 index. As the market worries about a possible military strike against Syria, some traders are selling their stocks in favor of the safety of US Treasury bonds. The price of futures contracts on the US 10-Year Treasury notes is up 0.35% since the start of the week.
But while stocks are getting hit in favor of bonds this week, equities are up 15% for the year. And, it’s the tech sector that’s done particularly well. The tech-heavy NASDAQ Composite Index is up 20% since the start of 2013. And, it’s even up a little less than 1% in August despite the S&P 500’s loss of 2.5%.
So, while tech has outperformed the general market this year, why does Doug Ramsey believe it will continue to outpace other types of stocks?
Watch the video above to see what Ramsey believes is ahead for the next year and a half for the sector.