Yardeni Sees Tech Offering Attractive Entry Point After Pullback

Technology stocks have returned to attractive levels for investors willing to play the long game after a pullback from last year’s record highs, according to veteran strategist Ed Yardeni.

Uncertainty around the impact of artificial intelligence on software businesses, coupled with the effects of the war on Iran, have pushed information technology stocks down 13% since the sector reached an all-time closing high in October. During that period, earnings estimates for the sector have accelerated, pushing its price-to-earnings multiple to 20.6. This is almost in line with the multiple of 19.6 for the S&P 500 Index.