Requisite Capital Management’s Bryn Talkington appeared on “Closing Bell” to discuss the current state of the tech and energy sectors.
Talkington believes that energy is oversold, while tech is being overbought, with algorithmic trading causing a big rotation out of energy and into tech.
However, Talkington warns that multiples matter and that adding new positions in technology should be done with caution.
On the other hand, Talkington believes that energy has been a surprising loser and that the narrative surrounding the sector has shifted too quickly.
Despite markets being skittish, Talkington believes that the Fed will be able to fix the plumbing and that a hard recession can be avoided.
In addition to buying technology, investors are also buying gold, and Talkington believes that gold can have a bid if the Fed pauses quantitative tightening and financial tightening eases.
