The recent tech rally may be doomed.
Money manager Dan Suzuki of Richard Bernstein Advisors warns the market is far from bottoming — and it’s a concept investors fail to grasp, particularly when it comes to growth, technology and innovation names.
“The two certainties in this world of uncertainty today is that profits growth is going to continue to slow and liquidity is going to continue to tighten,” the firm’s deputy chief investment officer told CNBC’s “Fast Money” on Tuesday. “That’s not a good environment to be jumping into these speculative bubble stocks.”
Fresh off the holiday weekend, the tech-heavy Nasdaq bounced back from a 216-point deficit to close almost 2% higher. The S&P 500 also mustered a turnaround, erasing a 2% loss earlier in the day. The Dow closed 129 points lower after being off 700 points in the session’s early hours.
Suzuki suggests investors are playing with fire.
It’s kind of a do not touch story,” he said. “The time to be bullish on these stocks as a whole is if we are going to see signs of a bottoming in profits or you’re seeing signs that liquidity is going to get pumped back into the system.”
However, the Federal Reserve has been taking back the punch bowl. And it has serious implications for almost all U.S. stocks, according to Suzuki.
“Whatever company you want to pick, whether it’s the cheapest companies, the companies that are putting up the best cash flows or the highest quality companies, the thing that they all have in common is that they benefit tremendously from the past five years of record liquidity,” he said. “It basically created a bubble.”
Suzuki and his firm’s bubble call stems back to June 2021. Last May, Suzuki told “Fast Money” a bubble was hitting 50% of the market. He’s still telling investors to play defense and target contrarian plays.
“Look for things that are bucking the trend, things that have a lot of positive, absolute upside from here,” said Suzuki, who’s also a former Bank of America-Merrill Lynch market strategist.
The best option may be going halfway around the world. He only sees China as attractive, and investors will need a 12 to 18 month time horizon.
China: ‘Precipice’ of bull market?
“China’s market [is] much, much cheaper on a valuation basis. From a liquidity perspective, they’re like the only major economy out there that’s trying to pump liquidity into its economy,” noted Suzuki. “That’s the opposite of what you’re seeing outside of China and the rest of the world.”
He believes it could be on the “precipice” of a bull market as long as profits growth carries into the broader economy.
Even if he’s right, Suzuki urges investors to be prudent.
“If we’re in a global slowdown that may ultimately turn into a global recession, this is not the time to be pedal to the metal in risk anywhere in the portfolio,” Suzuki said.
Who is Eric Dier’s fiancee Anna Modler and when are they going to get married?
Billionaire Tim Draper Says El Salvador Will Become One of the Richest Countries on Earth For This One Reason
Radisson Hotel Group introduces experiential hospitality to Himachal Pradesh
Disgraced Supreme Court whistleblower busted for lying was once a mainstream media darling
Woman Dies After Hit By Car, Then Slammed Into by Oncoming MTA Bus in Manhattan: Police
Social Security disability benefit offices reach breaking point with huge claim backlogs
When Postpartum Depression Shows Up as Intense Anger
Nobu Hospitality and Simon Celebrate Opening of Nobu Hotel & Restaurant at Phipps Plaza
Balenciaga drops lawsuit against production company North Six and lets Demna keep his job
37 Best Non-Alcoholic Drinks to Try In Lieu of Booze in 2022: Amass, De Soi, Monday, Kin, Ghia
What You Should Know Before Using the Lensa AI App
Why J. Cole Changed His Name From Therapist
Council Post: Recession-Proof Your Finances By Evaluating Savings And Debt Today
Investment fund controversy roils Marcos Jr regime
‘Sister Wives’: Janelle Brown Starts Business Separate From Kody Amid Split Rumors
Finance24 hours ago
Council Post: How To Capitalize On The Bottlenecks In Your Business
Finance24 hours ago
Yield Curve Inverts To Depths Not Seen Since 1980s, Raising Recession Fears
Tech24 hours ago
Amazon, FBI.gov, and 70k Other Sites Send Your Data to Elon’s Twitter
Auto24 hours ago
Next-Generation Toyota C-HR Not Coming To The US
Sport23 hours ago
Inside shelled stadium where England last played France now gutted by war
News23 hours ago
T. S. Eliot Saw All This Coming
Wellness23 hours ago
22 Songs for When You Just Need a Minute to Chill and Stretch
Travel21 hours ago
Waldorf Astoria Chicago unveils fully updated guest rooms and suites, lobby and spa