After a rough 2022, some investors are returning to technology in droves. The Nasdaq Composite has been Wall Street’s best-performing index so far, up nearly 7% year-to-date. But investment veteran Michael Landsberg is staying on the sidelines for the time being. “I think tech is dead for a while and you’re better off selling rallies and tech to position yourself for things that you need,” Landsberg, partner and chief investment officer at Landsberg Bennett told Private Wealth Management CNBC’s “Street Signs Asia” Wednesday. “Heading into 2023, we believe it’s important for investors to sell profitless and high multiple stocks as these types of stocks won’t do well during a recession and need extra money on the sidelines along the way.” what will likely be a disappointing earnings season,” he added. He said he believes investors are in a “waiting game to weather this current storm” and that they will have to be selective when they investing new money in the stock market Stock picking With that in mind, Landsberg said he prefers the consumer staples and healthcare sectors The consumer is now “in a bad place,” Landsberg said, citing “high” credit card debt “for several decades and “for several Decades of low” cash stocks. Consumer staples will therefore be a better trade than cyclical stocks as the Ka he added. “I think consumer goods will suffer a lot more damage than staples if the consumer gets incredibly weak. Staples too obviously will be hurt if the consumer pulls out at the rate we think it will, but there will be a lot less damage,” he said. Landsberg pointed to discounters like Costco and Dollar General, which he says are “quite solid across the board.” “I think people are going to trade down. They’re still going to have to buy some of these things, and that’s going to be a place that’s going to hold up better.” he describes as a “dominant player” in his space. He likes the company for its consistent revenue and earnings per share growth, as well as its “outstanding” dividend growth. Additionally, Landsberg likes NextEra Energy for its leadership in renewable energy and the “very profitable” regulated one The company is also enjoying strong dividend growth, he added its top pick by US consulting firm Booz Allen Hamilton, a “dominant market share” firm that counts the US government among its top clients. “Booz Allen is actually the opposite of stretching and tightening the consumer. The one customer that never seems to stop spending is the US government. It’s a leading player in consulting, but more importantly in technical consulting, so cybersecurity, artificial intelligence and defense,” Landsberg said have a problem doing more business and continuing the business they have,” he added, noting that the stock price has retreated from its highs and is now “attractive” as a longer-term investment.
