TIPSLIFEHACKS

Despite recent market volatility, now's not the time to ditch your top-performing tech stocks, according to Michael Bapis, Managing Director and Senior Portfolio Strategist at Vios Advisors, part of Rockefeller Capital Management. In an interview on CNBC's 'Closing Bell,' Bapis argued that the narrative of technology being 'too expensive' is overblown and that investors should stick with the proven winners they’ve identified.

Bapis’s perspective comes amidst ongoing debates about whether the tech sector, particularly the 'Magnificent Seven' (Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta), has become overpriced. Concerns about high valuations and potential regulatory scrutiny have fueled some investor anxiety. However, Bapis believes the fundamentals remain strong.

Why Tech Isn't 'Too Expensive'

“The idea that technology is too expensive is a narrative that I think is over,” Bapis stated. He emphasized that these companies continue to demonstrate robust growth and innovation, justifying their valuations. He pointed to their continued dominance in their respective markets, their ability to generate significant cash flow, and their ongoing investments in research and development.

He highlighted that many of these tech giants are not just software or hardware companies, but are actively shaping the future of various industries – from artificial intelligence and cloud computing to electric vehicles and social media. This transformative potential, he argues, is a key driver of their long-term value.

Sticking with the Winners

Bapis’s advice is straightforward: don’t abandon the tech stocks that have delivered strong returns so far. “I think you want to stick with the winners,” he said. He cautioned against trying to time the market or chasing short-term gains, suggesting that a long-term, disciplined approach is more likely to yield success.

He acknowledged that there will be periods of volatility and pullbacks, but he believes that the underlying strength of these companies will allow them to weather any storms. He also noted that many of these stocks are still trading below their historical valuations when adjusted for growth.

Beyond the Magnificent Seven

While Bapis expressed confidence in the 'Magnificent Seven,' he also suggested that investors shouldn’t limit themselves to just these well-known names. He believes there are other promising technology companies that are poised for growth and could offer attractive investment opportunities.

The Bigger Picture

Bapis’s comments reflect a broader perspective on the current market environment. While inflation remains a concern and interest rates are elevated, he believes that the economy is showing signs of resilience. He also noted that the technology sector is playing a crucial role in driving economic growth and innovation.

Ultimately, Bapis’s message is one of optimism and conviction. He believes that technology will continue to be a major force in the global economy and that investors who stick with the winners will be rewarded in the long run. His advice offers a reassuring perspective for those navigating the complexities of the current market and considering their technology investments.