JPMorgan Chase: We should cut exposure to technology stocks now and bet on new open concepts

$Alibaba(BABA.US)$ $Energy ETF(BK2724.US)$
According to the Financial Associated Press, the US S&P 500 Index closed higher this Monday, ending last week’s five consecutive trading days of decline. At the same time, along with the decline in technology stocks, the Nasdaq has weakened for the fourth consecutive trading day. In this regard, JP Morgan Chase strategists headed by Marko Kolanovic said that investors' panic in seeking security in the field of technology stocks has been excessive for a while, and the drag on the economic outlook caused by the mutant delta strain may be short-lived.

Although JP Morgan Chase strategists agree that the reopening of the global economy has been delayed due to the recent surge in new coronavirus cases, the investment bank predicts that the spread of the delta mutant virus is likely to have reached its peak, and it will subside in the U.S. and globally. .

Kolanovic and his colleagues suggested in a client report that investors should now consider reducing their exposure to technology stocks and increasing their holdings in energy stocks and other companies that are more sensitive to economic performance.

Article excerpted from the US Stock Research Agency