How to position in the markets following last week's sell-off

What did you see, How did you see the action that we saw in the in the tech sector last week? How do you see investors or how do you believe that investors should play it going forward? I think it’s nervousness just given the overall market, geopolitical you know and everything going on with the 10 year book. I think it’s a get out the popcorn room. I think this is going to be a robust tech earnings season next few weeks. We view this more of a golden buying opportunity given what we see in cybersecurity, the AI revolution and digital marketing and advertising that’s trending ahead expectations and that’s our view. This is not the time to run. It’s actually the time to own the winners. All right. So Dan, Ives is bullish right now on tech saying this is buying opportunity. Steph, how do you see all this? I mean we got earnings season coming up. We’re seeing earnings expectations continue to fall right now. How do you view the accident we saw in the market last week as someone who obviously advises clients, how are you advising people to play the markets this week? I think it’s pretty remarkable, Frank, that we’re only down 2 1/2% from all time highs in the S&P 500 in the past sixteen months were up 33%. We’ve had to deal with hotter inflation, an unknown Fed bank earnings on Friday which weren’t great, but I don’t think by the way they were as bad as they they reacted but nevertheless it wasn’t good. We have the the geopolitical issues. I think the reason we’re bouncing back today is because Israel was actually pretty successful in terms of shooting down 99% of the missiles and drones that came at them. We don’t know what their game plan is, and I think that’s the reason we’re going to stay volatile. But I want to step back for half a second and say why exactly is inflation hotter than expected? Inflation is hotter than expected because we’ve had an unprecedented amount of fiscal stimulus in the system for the past four years and that is acting as a nice tailwind for the economy. We’re growing above trend and that will lead to better than expected earnings and they agree that technology with with Dan that technology earnings will be good. But The thing is other sectors earnings will be good and some of those sectors have really, you know, fall by the wayside. And I think there’s your opportunity, all right. So you’re saying earnings are going to be good stuff. But I mean I’m looking at communication services estimate is for it to be basically 29% higher year over year, basically tech 21% higher year over year. Do you think it can live up to those lofty expectations even as we more broadly see earnings expectations decline? I think you’re gonna see 8 to 10% growth in the SP 500. I think technology will actually deliver, but they’re over owned and there are higher expectations than something like energy which should see growth in earnings. We should, we should see industrials do very well, 15 to 20% organic growth, free cash flow. And I think you’re also going to see good numbers in the materials and in some of the discretionary. I’m. I’m most excited this week actually for Dr. Horton to report because I think housing is on the mend, and I think that’s a place where you want to be investing as well. All right, Dan, I’m going to come over to you. Obviously, again, earning seasons kicking off, You’re looking at the cybersecurity sector for opportunities, But it’s kind of a head scratcher. Ever since Palo Alto Networks reported back in February, the entire cyber sector has taken a pretty steep decline. Do you believe that’s going to see a turn around during earnings season? I mean, why would you want to buy cybersecurity stocks right now when they’ve been under so much pressure? Yeah, look, I think this is the massive disconnect. I think this is going to be a turn around for the ages for cybersecurity Z scalar crowd check. We’re actually strong buyers of Palo Alto here in terms of the transformation they’re making and and right now I think this is going to be one of the biggest sub sectors of tech especially as you have all. What are you saying that the markets not seeing, Dan, because everyone’s taking what happened with Powell as ultimately that just the start of the shot across the bow negative. We see the opposite, which is why right now, Frank, this is a pound to table time on cybersecurity in our opinion and that’s how we’re hand holding investors through it. All right, so you’re hand holding investors through it. Steph, I want to come back to you. Something you’ve been looking at is the money and money market funds. You know right now according to ICI there’s about 6 trillion in there, but in April about 31 billion and came out of those money market funds. How do you see that impacting tech investing? But just the markets overall. You know what’s interesting, Frank, is Larry Fink of BlackRock on Friday said that there was 9 trillion in money market numbers. So I he must have the most updated figures because I actually also thought it was about 6 trillion. What doesn’t even matter, six or nine. There’s a heck of a lot of money on the sidelines that, OK, I get it. It’s getting 4 or 5% in interest. So you can sleep well at night, but you’re going to get much more in terms of total returns in the S&P 500. And that’s actually also what Schwab, their management team has said. They look at cash balances on a month to month basis. And those numbers have been coming out of money markets and cash on the sidelines going into the S&P 500, ’cause there’s this fear of missing out. And if I’m right and we have better than expected earnings and we have a broadening out in earnings, that’s all the more reason why you do want to be buying in on these dips. All right, Dan, I’m going to give you last word. I know you’re bullish on cybersecurity. Give us your other top picks for right now. Yeah. So overall, we we be Microsoft. To me from a cloud perspective, these are going to be jaw dropper numbers in terms of what we see there. Google’s another one some of the parts, AI could have 30 or $40 per share. And then overall, when you look at the AI revolution, it’s it’s Palantir front and center in terms of the use cases. This is just the start of a 1995 moment. I think tech leg higher. We see 15% off the rest of the year. Yeah. And your notes also see that you you like Salesforce quick take on that Informatica report that they’re possibly looking to acquire Informatica. Oh, we would loudly applaud that. That would be a no brainer. I think Benioff right now is on the offensive and I think this is exactly what you want to see from the tactician needing more and more share. This would be an acquisition. I think the street would cheer.