Investor Michael O’Rourke is warning traders to avoid tech stocks as an eventual rise in interest rate “plays out really well” for banks, according to a report by Bloomberg on Monday.
O’Rourke, Jonestrading chief market strategist, stated that growth stocks had made incredible progress. But, he noted that cracks are emerging that signal that there are other better places to invest money in the future.
O’Rourke further stated that there is a shift towards value stocks as interest rates continue rising as high yields make premium investors pay to hold high-growth firms unappealing.
The chief market strategist commented that energy and materials are attractive sectors for the traders to dump their money.
O‘Rourke stated that some investors were buying the commodities because they were concerned about the shortages encountered today, and the scarcity value is making the industry more attractive.