JPMorgan trader warns on speculative tech stocks: Sell now while you can

Odaily Planet Daily News Many on Wall Street are warning investors holding speculative tech stocks: Sell now while you can. Goldman Sachs' basket of unprofitable tech stocks surged 27% in May, outperforming the Nasdaq 100 Index by 17 percentage points—the basket's best performance since November 2020.

So far this year, the portfolio is up 57%, compared to the S&P 500's gain of 11%. JPMorgan's market intelligence team, led by Andrew Tyler, notes that after such a rapid rally, and with potential yields still likely to remain elevated, investors should rightly "be wary of higher-risk stocks within the tech sector." Tyler advocates shifting toward more established names in the industry, especially as bond yields rise, which could hit smaller, loss-making companies the hardest. He adds that stock buybacks by larger, profitable tech firms "help drive the rotation into quality companies." (Jinshi)