Cyclical stocks may be racing higher, but tech is still expected to be a long-term winner

first_img“You can see why people go crazy over them. I think there will be more juice for them in 2021,” he added. “In 2020 alone, the performance gap 70%. If the market is up 10% in the next year, the stocks at the epicenter could be up 80%. There’s that much juice in them … It’s stocks like Six Flags, it’s what you think was hit hardest in social distancing.” But Lee stresses that tech is still core and important to hold. “The revenue growth is going to be superior to the overall market,” he said. “I think it’s got legs. I think more money comes from the sidelines, so I’m not selling growth or tech.”He also expects the market to keep rising into the end of the year, and his S&P 500 target of 3,250 is too low with the market now trading above 3,600. “My target makes no sense because we’re in the fourth quarter, and there’s a Santa rally coming,” he said.‘Lousy fourth quarter’The S&P was up 0.7% Monday afternoon, and the Dow rose more than 1%. The small cap Russell 2000 jumped another 1.8%, heading to another record close. But the Nasdaq lagged, up just 0.4%.Lee said there are concerns that will worry investors, and the rapidly spreading virus will continue to hobble the economy even as the market can rally.“I think it’s going to be a lousy fourth quarter and I think that’s what everyone is bracing for,” he said. “Nobody thought the vaccine was going to change the fourth quarter, but now we won’t have to think the fourth quarter is what the next six quarters will look like. Stocks do bottom nine months before the economy. If the vaccine is going to be in the summer, then all the cyclicals should be rallying now.”Sam Stovall, chief investment strategist at CFRA, said he downgraded technology to market weight last week but he’s still positive on the group even with the vaccine trade. “It still won’t really be opening up the economy until late second quarter, third quarter next year. We still have a long way to go to experience a weaker economy. Let’s not be too quick to give up on that growth that’s served us well,” he said.The big internet names, such as Facebook, may not gain at the same pace they did previously, but within the technology trade there are sub-sectors that have good momentum. They include tech hardware, systems software, semiconductors, applications software and semiconductor equipment, he said.Some parts of tech are a cyclical trade like semiconductors and semiconductor equipment. Semiconductors were up 1.6% Monday.“What all of this means is the leadership of the market is broadening out,” said Art Hogan, chief market strategist at National Securities. “You want to have both. You just want to rebalance.” FANG may be lagging, but don’t count technology stocks out.Positive news on vaccines has spurred buying in cyclical stocks that should do well when the economy is running at full speed again. Last week, tech stocks, and high-flying FANG names, sold off after Pfizer’s positive vaccine news drove investors into many of the stocks that have been lagging since the economic shutdowns last March.Moderna’s positive vaccine news sparked the same reaction Monday, with FANG names — Facebook, Amazon, Netflix and Google-parent Alphabet — all trading flat to lower but tech gained about a half percent. Facebook and Alphabet are in the communication services sector and that sector was also up just slightly, compared to a 6.3% gain in energy; a 3.4% jump in airlines and a 2% increase in industrials.- Advertisement – Traders work the floor of the New York Stock Exchange.NYSE “The money is coming from the sidelines so that money goes into stocks and it’s going to push everything higher, especially if growth and tech is 75% of the market,” said Tom Lee, founder of Fundstrat. “People are taking cash off the sidelines and buying market exposure. It’s going to lift all boats.”Netflix and Facebook are considered stay-at-home stock plays that should benefit if the economy is shut down or people opt to stay at home to avoid the virus.“I think the active equity manager made a lot of money on stay-at-home stocks. Now, there’s tailwinds for the cyclical trade,” said Lee. He said those companies at the epicenter, like airlines or hotels, have cut costs and should see a topline recovery.- Advertisement –center_img – Advertisement – – Advertisement –last_img read more

Timothy Ayieko: Cranes midfield dynamo dies

first_imgTimothy AyeikoKampala, Uganda | IAN KATUSIIME | Those who watched Timothy Ayeiko play say he was a midfield dynamo whose superb skills won him favour with fans at clubs where he played such as KCC FC in Uganda and Gor Mahia in Kenya where he enjoyed heroic status.Ayieko became Uganda Cranes coach at a time when appointing foreign coaches to manage the national team was a distant option. In 1995 when Ayieko was appointed Cranes coach, Federation of Football Association (FUFA) was keeping a tradition of either picking a former Cranes player or tasking one of the local coaches to take up the job.Naming Ayieko was, therefore, a stamp of his not being considered a ‘foreigner’. After all he had made a name as a Cranes player and come through Uganda’s ranks of league football. Ayieko was part of the golden generation of Cranes players that qualified for the 1978 AFCON tournament and reached the final where they lost to Ghana.But Ayeiko was, in fact, born in Kisumu, western Kenya, in 1954 to John Njoga and Hellen Anyango. His parents emigrated from Kenya to Uganda when he was a young boy.Ayieko’s talent as a footballer was seen at an early age. Ayieko went to Nsambya Primary School and Nakasero SSS but only studied up to O-Level in 1970 due to financial constraints.According to veteran sports journalist Badru Zziwa, Ayieko’s football career began in 1971 when he joined Nakivubo Boys. At the time, the club acted as a recruitment ground for Express FC, one of the most prominent clubs in Uganda. In 1972, Ayieko joined National Insurance Corporation in search of a more professional service and two years later he joined Express as a more experienced footballer where he won league titles in 1974 and 1975. It is at Express that Ayieko’s midfield artistry started getting noticed and KCC came calling.In a profile Zziwa wrote of Ayieko in 2010 in The Observer, he said the then Express midfielder was being courted by KCC manager Jaberi Bidandi Ssali. In 1976, KCC signed Ayieko and the highlight of his time at the club was during the 1978 CECAFA club championship where his exploits included a hat-trick in a 3-0 win against Luo-Union of Kenya.“This match is best remembered for the drama after the final whistle when the Kenyans were angry that one of their own (a Luo) had destroyed them.” Zziwa wrote.KCC FC won that championship, their only CECAFA club title to date, with a penalty shoot-out against Tanzania’s Simba.At the time he started playing for Express, Ayieko had joined the Cranes fold and was part of the Cranes team that took part in the 1978 tournament although he was unlucky not to take part in any of the Cranes five games due to injury and a logistical mishap that denied him a chance to play as a substitute in the final game. According to Zziwa, Ayieko’s passport was forgotten in the team hotel denying him a once in a lifetime opportunity.Share on: WhatsApp Pages: 1 2last_img read more