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Despite recent market volatility and concerns about high valuations, technology stocks remain a compelling investment opportunity, according to Michael Bapis, Managing Director and Senior Portfolio Strategist at Vios Advisors, part of Rockefeller Capital Management. In an interview on CNBC's 'Closing Bell,' Bapis argued that investors shouldn't abandon the tech winners that have performed well in the first half of the year.

Bapis's perspective comes at a time when the tech sector has faced significant headwinds. Rising interest rates, inflation, and concerns about slowing economic growth have put pressure on tech valuations, leading some investors to question whether the sector is overvalued.

Why Stick with Tech Winners?

So, why is Bapis so bullish on tech, even in the face of these challenges? He points to the fundamental strength of many of these companies. “These are companies that are still growing, still innovating, and still dominating their respective markets,” he explained. He believes that their long-term growth potential outweighs the short-term risks.

Bapis emphasizes the importance of identifying and sticking with the proven winners. He suggests that investors should focus on companies with strong balance sheets, consistent revenue growth, and a clear competitive advantage. Trying to time the market or chase the latest fad is likely to lead to disappointment.

The Power of Long-Term Investing

Bapis's investment philosophy is rooted in long-term investing. He believes that trying to predict short-term market movements is a fool's errand. Instead, he advocates for building a portfolio of high-quality companies that are likely to perform well over the long run.

“We’re not trying to get rich quick,” Bapis stated. “We’re trying to build wealth over time by investing in companies that we believe will be leaders in their industries for years to come.”

Navigating Market Volatility

Of course, even the best companies can experience periods of underperformance. Bapis acknowledges that market volatility is inevitable and that investors should be prepared for it. However, he argues that this volatility can actually create opportunities for long-term investors.

“When the market goes down, it’s a chance to buy great companies at discounted prices,” he said. “That’s what we’re looking for.”

Key Takeaways

• Don't Abandon Winners: Investors shouldn't abandon the technology companies that have performed well in the first half of the year.
• Focus on Fundamentals: Prioritize companies with strong balance sheets, consistent growth, and a competitive advantage.
• Long-Term Perspective: Adopt a long-term investment horizon and avoid trying to time the market.
• Embrace Volatility: View market volatility as an opportunity to buy great companies at discounted prices.

Michael Bapis's advice offers a reassuring perspective for investors who may be feeling anxious about the current market environment. By focusing on the fundamentals and maintaining a long-term perspective, investors can navigate the challenges and capitalize on the opportunities that the tech sector has to offer.