Apple remains Wedbush Securities’ top tech stock to own after the U.S. Federal Reserve gave what the investment firm called a “bright green light” to own oversold tech stocks. The Fed raised interest rates a quarter point on Wednesday.
Chris Ciaccia for Seeking Alpha:
In a note to clients, analyst Dan Ives said that with the rate hike, along with expectations that six more rate hikes are coming this year and three in 2023, now is the time to own oversold tech stocks as investors feared the worst from the central bank, adding that the bottom is “now likely in for the year.”
“[The] Fed news takes the uncertainty and overhang away from the tech sector with the Street knowing the clear path ahead on rates and now letting the bulls/bears debate valuation and growth in the tech sector in the year ahead with this backdrop,” Ives wrote in a note to clients.
“In a nutshell, we believe the tech sector is as oversold as we have seen in the last five years and we would strongly be buying cloud, software, cyber security, chips, and stalwart tech names led by FAANG with Apple our clear favorite,” he added.
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Fed gives ‘bright green light’ to buy oversold tech. Could someone help me understand, Who does the Fed gives green light to buy AAPL?. The hedge funds, institutions perhaps?.
And why does the Fed making money more expensive, on top of inflation, become a green light for oversold and expensive tech stocks, that have pleasured themselves for yrs with cheap borrowed money?
This is antithetical to the typical environment where value stocks get the green light, vs growth (tech).