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According to Dan, a deep sell-off in technology stocks has created a massive buying opportunity for investors.
Minutes from the Fed revealed the potential for quicker-than- expected interest rate hikes, which led to a 3% fall in the index.
"Many of the secular tech winners we believe will drive the 4th Industrial Revolution are now in oversold territory with valuations we find very compelling."
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According to a Wednesday note from Dan Ives of Wedbush, a Fed-driven sell-off in technology stocks is creating a massive buying opportunity for investors.
The minutes from the Federal Reserve's last meeting showed the potential for quicker-than- expected interest rate increases and quantitative tightening later this year. Ark Invest's flagship fund sold off as much as 7% and is down 12% year-to-date.
The decline in technology stocks is a "get out the shopping list" moment for investors who want to buy downward-trending stocks.
"Many of the secular tech winners we believe will drive the 4th Industrial Revolution are now in oversold territory with valuations we find very compelling given the outsized growth prospects over the next 12 to 18 months," he said.
The Fed's fight against inflation will likely cause tech investors to be very volatile in 2022, as supply chain disruptions and COVID-19 variant continue to spread. Buying tech stocks with strong growth prospects at bargain prices is not new.
The December Fed minutes broke the camel's back for tech investors, but they should not throw in the towel on the tech bull cycle.
The growth of technology companies is being fueled by cyber security, 5G and big data.
The underlying growth in the tech sector is unparalleled to any period of time we have seen in the last 21 years, and it's being underestimated by investors.
Apple, Microsoft, Zscaler, Palo Alto Networks, and Matterport are some of the tech stocks that should be on investors shopping lists.
Business Insider has an original article.
