Tech stocks will likely claw their way back out of the ongoing weakness in 2023, says Gene Munster. He’s the Founder and Managing Partner at Loup Ventures.
Tech stocks remain good for long-term investors
Technology is taking a big hit this year as the U.S. Federal Reserve continues to tighten its monetary policy. At writing, the Nasdaq Composite is down more than 30%.
Still, Munster is convinced the next year will be a whole another story. On CNBC’s “Squawk Box”, he said:
2023 will be a great year for tech. The pain we’re seeing right now is resetting growth rates. We’ll get back to higher growth rates. So, if you have the luxury of owning these for a year plus, you’ll do well even with these highflyers or the big tech.
Simply put, Munster recommends that long-term investors now look for opportunities in the tech space even though in the near-term, he agrees, things may remain volatile.
Munster reveals his favourite stock in the tech space
His top pick in the tech stocks is Apple Inc (NASDAQ: AAPL). Munster is convinced the iPhone maker is a “safe haven” in the face of the coming recession.
They’re fundamentally in a good place with their products. We’ve checked iPhone demand over eight countries in the last day through lead times, they continue to be elevated. So, I think Apple Inc is a safe haven.
Shares of the multinational are down only 17% this year, which, in itself is encouraging considering the broader market has tanked over 30%.
More importantly, the Apple stock is still holding the psychologically meaningful $150 level.
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