Stocks of technology companies with “innovative value” are among the most attractive now, according to Louise Yamada, managing director of Louise Yamada Technical Research Advisors LLC.
“The ones that have innovative value is an area that we want to be involved in,” New York-based Yamada said in a radio interview on “Bloomberg Surveillance” with Tom Keene. “We’ve had a decade of repair, and these areas are coming back” to a leadership role.
Technology stocks fell from a peak reached a decade ago in a correction known as the bursting of the dot-com bubble, a reference to Internet-related businesses. The correction triggered a bear market in the sector.
The Nasdaq Composite Index reached a record high of 5,132.52 on an intraday basis on March 10, 2000. It touched a high of 2,552 today, above the average of 2,202 from January 2000 to today.
Yamada, former head of technical research at Citigroup Inc., also recommended “select industrials, select materials and consumer staples” along with globally exposed consumer discretionary stocks.
The Standard & Poor’s 500 Index tumbled 1.5 percent today to 1,195 in New York. The Dow Jones Industrial Average dropped 1.1 percent to 11,159.