Ditch surging Big Tech stocks and pivot to value instead, The Wealth Alliance CEO says

The CEO of the Wealth Alliance suggests that it is now a suitable moment to abandon mega-cap technology stocks. Robert Conzo stated that pursuing investments with such rapid growth rates can pose difficulties. Instead, investors ought to focus on acquiring value stocks in larger quantities.

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One CEO suggests that equity investors should move away from the mega-cap Big Tech giants, which have had a strong start to the year, and instead, diversify their portfolios by investing in value stocks.

Only a few select stocks, such as Nvidia, Meta Platforms, and Tesla, have accounted for nearly all of the gains seen in benchmark indices in 2023. The S&P 500 has increased by 13%, while the Nasdaq Composite has experienced a significant surge of 27% year-to-date, thanks to these stocks.

However, The Wealth Alliance CEO Robert Conzo warned investors not to anticipate similar high returns from major technology companies.

"Disregard the FAANG stocks or MAG 7 stocks – The Magnificent Seven," he informed Reuters, alluding to Nvidia, Meta, Tesla, Apple, Amazon, Microsoft, and Google's parent company Alphabet.

"Running after anything that is growing rapidly like that poses a challenge," Conzo expressed. "So where should you invest your money? You should invest it where it is not performing as strongly – like in undervalued assets."

Many experts share the same perspective as Conzo regarding the consistent and impressive growth of Tesla's stock over the past months. Prominent financial institutions like Goldman Sachs and Morgan Stanley are advising investors to consider selling a portion of their shares to capitalize on the rally and make a profit.

"It's time to readjust once more," Conzo expressed. "Withdraw some earnings from the market's upward trajectory and shift focus towards undervalued investments."

Value investors actively search for stocks they perceive to be undervalued, whereas growth investors aim to acquire shares from companies operating in rapidly growing sectors such as technology.

The initial set of trading tactics outperformed the market in 2022, with technology and other high-growth stocks experiencing a steep decline due to the intensified interest rate hike efforts by the Federal Reserve.

However, growth stocks have made a strong comeback in the current year due to two main factors: the anticipated reduction of interest rates by the Federal Reserve and the widespread fascination with ChatGPT and artificial intelligence technology.