Morgan Stanley Strategist Says US Tech Stocks’ Rally Is Overdone
- Tech will only bottom when the market does, Wilson says
- JPMorgan strategists also say sector to stop outperforming
WATCH: The Nasdaq 100 entered a fresh bull market last week.
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Morgan Stanley’s Michael Wilson — among the most prominent bearish voices on US equities — warns the rally in tech stocks that’s exceeded 20% isn’t sustainable and that the sector will return to new lows.
The Nasdaq 100 has soared into a bull market as investors fled economically sensitive sectors like banks following the collapse of several US lenders. Wilson said this rotation is taking place partly because tech is being viewed as a traditional defensive sector, though he disagrees with that thesis and sees utilities, staples and health care as having the better risk-reward profile.