Tom Lee’s fund analyst recommends buying tech stocks on dips amid sector rotation.

Huoxing Finance reports that on October 18, Mark Newton, an analyst at Tom Lee’s fund, told CNBC that it is currently a good time to buy technology stocks on dips, but investors should maintain diversified portfolios and prepare for sector rotation. Over the past month, volatility across asset classes has significantly increased, with the S&P 500 recently declining by about 6% and the technology sector experiencing a notable correction over the past week. However, compared to its gains in September, he believes the damage to technology stocks remains relatively limited. This year, markets have consistently exhibited sector rotation: energy stocks initially rose nearly 40%, followed by a broadening rally into technology, and now the focus has shifted to healthcare, which has reached new all-time highs. Investors need to be prepared for sector shifts and maintain diversification. Steve Sosnick, Chief Strategist at Interactive Brokers, noted that even investors who have not actively allocated to AI may still hold significant exposure to technology stocks through S&P 500 index funds. While market dynamics remain driven by sector rotation, he expressed concern over sustained declines in technology stocks and growing investor skepticism regarding the returns on AI investments.