The ongoing market sell-off is an “opportunity for long-term investors”, says Loup Ventures’ Gene Munster. He, however, has a different suggestion for ones with a “trading mindset”.
Munster’s remarks on CNBC’s “Squawk Box”
This morning on CNBC’s “Squawk Box”, Munster recommended traders to “stay clear for a month or two”.
The reason why I talk about staying clear is that it’s hard to fully dissect what is triggering the market right now.
Munster saw several reasons that could potentially be weighing on the market, including the fear of contagion after the news from China that its 2nd largest property developer by sales, Evergrande Group, could be on the verge of defaulting. He added:
I think the market is going to be flat-ish to down in the next couple of months.
Munster’s outlook on the technology sector
Munster expects the technology sector to take a hit in the near term as the U.S. Federal Reserve moves to hike rates.
Many of these tech stocks have higher multiple, they have less earnings, so they’re more sensitive to the rates.
He, however, expects a “handful of tech companies” to retain strength, including Apple Inc (NASDAQ: AAPL), which he forecasts will hit $200 a share in 2022.
Apple has powerful earnings and massive addressable markets. There’s almost an addictive factor to it, which is a powerful testament to where the earnings can go.
Shares of the iPhone maker are currently up about 10% on a year-to-date basis. Other tech names where Munster sees potential include Take-Two Interactive and an upcoming SPAC, Enjoy Technology.
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