JonesTrading Chief Market Strategist Michael O’Rourke is bullish on banks as these will be more advantageous than high-growth technology stocks when interest rates are eventually hiked, Bloomberg reported.
- O’Rourke said growth stocks have already had an incredible run and hinted that this has probably lasted long enough citing the cracks that have emerged, and that there are better investment opportunities moving forward.
- The veteran investor believes it may be necessary to move to value stocks as interest rates are hiked, and investors may find the payment to hold high-growth companies unappealing amid elevated yields.
- O’Rourke said investors attributed the current buying spree in commodities due to shortage fears, and scarcity value is boosting the sector’s attractiveness. He advised that energy or materials are long-term holdings. KBE is up 0.47%, while VGT is up 0.68%.