Investors might want to press the Buy button when technology stocks are on the market again.
Kristina Hooper, Invesco's chief executive officer, asserts that the group plays a key role in corporate America’s desire to increase productivity.
The firm's chief global strategist for technology told CNBC's Trading Nation on Friday that "technology over the long term is going to be benefit from increased corporate spending." There's lots of excitement.
She also suggests patience for investors.
Hooper said, "We might not see it in a short term just because yields go up."
The 10-year Treasury Note yield ticking higher is the main reason Wall Street is losing its affinity for tech. Friday's trading saw the yield reach a record 1.617%, its highest level since June 4. Tech stocks that are growth stocks typically perform poorly in an environment with rising rates because it puts pressure upon profits.
The tech-heavy Nasdaq has fallen more than 5% over the past four weeks from its record high of Sept. 7. The index closed at 14,579.54 on Friday, down 74.48 points. However, the index posted a positive week with a gain of 0.09%.
Hooper recognizes that the near-term environment favors tech over cyclicals. She believes that it is temporary and that there will be significant benefits in areas ranging from cybersecurity to software.
"There will also be increased spending by individuals. She noted that there is an increase in household net worth.
Hooper suggests a 3- to 5-year time frame in order to take advantage of bullish trends and lock in solid profits.
Hooper stated, "This is an excellent medium- and long-term investment."
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