Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Bryn Talkington and Michael Farr, president, Farr, Miller & Washington commented about whether DIS-N, AMZN-Q, GOOG-Q, META-Q, XLV-N, AMD-Q, META-Q, XLE-N are stocks to buy or sell.
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COMMENT
Glimmers of hope over next 6 months? Historically since WW2, every time the stock market ran up 20% or more as in 2021, it fell double digits in the first half of the following year. In the second half of that year, markets had at least returned to break even. The second thing is that inflation and interest rate hikes have already been significantly priced in. So by spring of 2023, developed world economies could experience a relief rally, if investors convince themselves that the Fed will dial back aggressiveness to prevent a deep recession. Remember, stock markets tend to look 6-12 months ahead. So spring 2023 should look more optimistic than today. Lastly, technology sector needs to lead the charge, as it's the biggest sector. Look for tech to be more robust as we enter the second half of this year.
COMMENT
Which area of tech to watch? Every 10 years, the pendulum swings between hardware and software. From 2011-2021, the horses that led the way were software. Before that, it was hardware. Now, the ones that seem to have the stabilizing factor, like META, are starting to move towards hardware. The trend is just starting to swing away from software and over to hardware.
DON'T BUY
BUY
AMZN vs. SHOP Both have extremely long runways. In uncertain times, he'd rather recommend a megacap like AMZN, which has more defenses if we were to go into a recession, and that's a big "if". SHOP at $338 US is an absolute bargain. He has a 5% position in AMZN, one of his top 5 holdings, but less than 1% in SHOP.
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