Speaking to TD Ameritrade Network, Hooper noted that the volatility is a consequence of the rising inflation concerns alongside supply chain issues. According to the strategist, inflation not being transitory as expected adds to the market anxiety. However, she noted that the projected market movement stems from the overall effects of the pandemic, and it will take time for normalcy to return. Additionally, Hooper believes the happenings around the U.S. Congress will contribute to the volatility. She termed the Congress as dysfunctional, something positive when it comes to factors like tax hikes.
Tech stocks presents opportunity
Furthermore, Hooper stated that the technology stocks have an enormous opportunity for investors despite the expected volatility. Hooper suggested that with labor costs facing the United States, companies will likely invest more in technology to counter the shortage of workers directly benefitting stocks in the sector. However, she noted that the opportunity is potentially near term while citing stocks in cybersecurity and software will stand out. She called on investors to focus on the tech companies’ earnings season to inform the future of their stock. Hooper believes that most companies will be impacted by the challenges facing the U.S. economy alongside supply chain disruptions and rising labor costs. Watch the video: Invesco’s Kristina Hooper shares her forward expectations for markets, explaining why she sees “an enormous amount of opportunity” for tech stocks despite the recent rise in the ten-year yield. [coinbase]
