A senior strategist at JPMorgan Private Bank says the recent market rebound is giving investors a rare opportunity to clean up their portfolios.
Monica DiCenso, head of global investment opportunities at JPMorgan Private Bank, says in a new CNBC interview that investors should use the rally as a repositioning window rather than a reason to stay the course.
She says it is not a good idea to remain overweight tech.
“This rally is a gift. I say if you didn’t like your portfolio a few weeks ago, this is a great time to reposition and think about maybe moving a little bit out of tech because you’re probably overweight. Most people I work with are.”
DiCenso pointed to financials as her first rotation target, arguing that the sector has underperformed despite a favorable setup that the market has yet to fully price in.
“I look at an area like financials, still underperforming. You’ve got a fairly benign rate environment. We think deregulation is coming. And so that could be a reason to lean in there. And obviously, a lot of negative press around private credit. And so sentiment has been pretty bad there. So I like those sectors where sentiment has been negative, and they’ve underperformed.”
Her second target is health care and biotech, a sector she says has been overlooked by investors who have been piling into tech to capture the AI opportunity, without considering which other industries stand to benefit just as much.
“A lot of people who love the AI story are piling into tech. And so what about all the other beneficiaries? How do you not believe drugs come to market faster with more accurate results? And so you’ve got to look at biotech and health care.”
As of Thursday’s close, the S&P 500 is trading at a fresh all-time high of 7,022.
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