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  • hello and welcome to sectors up close.

  • I'm Matt Good Eric.

  • Well, our guest today is John Stoltzfus, the a chief market strategist for Oppenheimer Asset Management, who's going to discuss two sectors today?

  • Information technology on industrials with this double barrel strategy represents growth versus value stocks.

  • There has been much debate about whether investors should rotate out of high priced tech stocks into lower price, dividend paying companies.

  • Like industrials, where the S and P 500 information technology sector is dominated by your mega cap technology stocks such as Apple and Microsoft, as well as payment companies such as Visa on chipmakers like in video, it's up 37% over the past year.

  • Compare that to this index.

  • The S and P 500 Industrials index includes ah, Union Pacific, Honeywell on Boeing In its top five.

  • It has underperformed the wider market up Amiga 6% in the same timeframe, So why combine them?

  • Well, let's ask John Sofus off Oppenheimer Asset Management.

  • John Many Thanks for talking to us.

  • First things first, then what's the thinking behind investing in these two sectors on why now?

  • Well, at at this point what we're seeing in Our view is we're poised to approach a recovery in the global economy as well as in the United States economy.

  • It would prescribe that investors need to be exposed to growth as well as to value sectors which offer an opportunity to participate in this recovery.

  • We have seen technology outperform on other growth issues outperformed for the last two years while value has underperformed.

  • But from late September last year, we have seen value beginning to outperform growth.

  • We think it's an opportunity to own be exposed to both sectors at this time and capitalize on that expectations off a global economic recovery as covert 19 is put into check by widespread vaccinations.

  • Yeah, I wanna ask you specifically about tech stocks.

  • You've compared technology today to that of the automobile, uh, in the early 20th century.

  • But how concerned should we be about the risk of buying them now, given their prices job?

  • Well, I I think it really depends upon the per stock issue as to how high valuations are.

  • If you consider the broader index of the Information Technology Index, there are plenty of technology stocks that, while trading it richer multiples than usual, are not a stratospheric multiples.

  • They're also companies that are the core of the technology that drives both business as well as consumer trends today.

  • And you describe this strategy is a growth and value bar bell.

  • How exactly does that work?

  • Well, a bar bell essentially means you have to, uh, components in your portfolio that are in a way are at opposite ends of the spectrum.

  • You have technology, which is the growth area, an area where technology today is ubiquitous, serving both businesses and the consumers.

  • On the other side, you have the industrial sector, which is appears from the outside, perhaps somewhat old guard in terms of manufacturing.

  • So you've got growth and value.

  • We do not believe that investors are moving out of growth.

  • They're just moving into the value sector to get better.

  • Diversification, uh, to capitalize on what we expect will be a global economic recovery on back of the U.

  • S.

  • And its allies and other countries around the world putting to check to the spread of Cove in 19 really interesting stuff, John.

  • Many thanks.

  • Indeed, that was a John stuffers chief market strategist at Oppenheimer Asset Management.

  • Well, before I go Here are some of the top stories in the technology on industrial sectors.

  • US data analytics firm Palin Technologies reported a 40% rise in sales in the second quarterly results since going public in September.

  • Known for its work for the CIA, Palin tears a net loss narrowed to $148 million in the quarter on revenue of 322 million shares in a Japan's Softbank closed at a record high in Tokyo on Tuesday on the back off the recovery in the value of the firm's technology portfolio.

  • It shares rose 4% to push its share price above the 10,111 yen reached in February 2000, the height of course off the dot com bubble.

  • It shares have risen 300% from lows hit last March as the pandemic savaged its portfolio On finally, the private plane synonymous with the jet set elite is nearing the end off the runway.

  • Lear jet is ending production this year following a slump in demand due to competition from a new and less expensive rivals were created by American entrepreneur Bill Leah, the Lear jet.

  • Our first took off from Wichita, Kansas, in 1963.

  • Some 3000 of since are taken to the skies capable of flying close to the speed of sound.

  • Despite its performance, it just couldn't compete with rivals on cost.

  • That is your round up of the information technology and industrial sectors.

  • I'm Matt generic, and this is Reuters.

hello and welcome to sectors up close.

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B1 technology growth recovery index industrial portfolio

Vaccines put industrial and technology stocks into focus

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    林宜悉 posted on 2021/02/18
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