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As the S&P 500 tops 4,000, two traders give their top sectors

April 05
10:46 2021

The S&P 500 kicked off the second quarter strongly, breaking through 4,000 for the first time.

Tech stocks were the leaders, but proposed infrastructure plans from the White House and a continued reopening push may bring other stocks to the forefront again.

Bill Baruch, president of Blue Line Capital, told CNBC’s “Trading Nation” on Thursday that value names still hold great potential.

“I think value is going to continue to lead,” said Baruch. “Overall, economic activity is going to continue [to] pick up. … Infrastructure spending will be a tailwind, and deal activity in general is going to be a tailwind to the sectors, especially banks.”

Some spaces Baruch highlights include rails, aerospace and aviation, and crude oil-sensitive stocks. Still, he’s not counting the tech space out quite yet.

“Tech has had these really big runs. Trimming names like AppleMicrosoftPayPal has proven to be a really good strategy, and then rebuilding those positions on extreme weakness that we’ve seen here,” said Baruch. “You can’t ignore the fact that the Nasdaq [100] is breaking out above a trend line going back to Feb. 16 and it’s coming through the 50-day moving average right now, so it’s going to be moving higher.”

John Petrides, portfolio manager at Tocqueville Asset Management, instead has a focus on robotics and artificial intelligence moving forward.

Continue Reading at CNBC

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