Tech stocks sold off for the second day on Monday, but several experts told CNBC they believe the weakness will be short-lived.
For one, the valuations are “nowhere near” the lofty levels reached back in the 2000 dot-com bust, said Nancy Tengler, chief investment officer at Heartland Financial.
Plus, CEOs from every sector are talking about how technology is going to help them improve margins and increase productivity, she added.
“If we aren’t going to get any help from Washington, the solution for our productivity and GDP growth problem is technology,” Tengler said in an interview with “Power Lunch” on Monday.
On Monday, Apple dropped after the stock was downgraded by Mizuho Securities, and other big tech names followed. The Nasdaq composite and the Nasdaq 100 indexes fell 0.87 percent and 1 percent respectively and the Technology Select Sector SPDR ETF (XLK) broke below its 50-day moving average for the first time since April 18.
Robert Pavlik, chief market strategist at Boston Private, believes that with President Donald Trump‘s agenda failing to catch traction this year, the market is going to return to growth — and that means big-cap tech.
“Buy the FANGs. You’ve going to be profiting from them in the long term,” he told “Power Lunch.”
“You’re going to see an economy that’s just barely moving forward. People are going to look for growth in their portfolio.”
He’s especially a big fan of Amazon, which he thinks will continue to remain a winner.