Embrace ‘the mullet trade,’ Jefferies analyst says

A rally in tech stocks could still be a year away, says one longtime tech analyst, and the recovery could even take the form of iconic hairstyles.

“We believe in mullet trading.” [That] 2023 is really tough 2023 is a risk and it could recur in late 2024 instead of early next year. “

Till added that the tech sector is likely to experience more “pain” in the first half of 2023 and reach a “fluid, long and exciting” uptrend later this year.

Australia’s Cameron Smith shakes hands with Australia’s Jason Scribner at the Royal Queensland Golf Club in Brisbane, Australia, November 26, 2022. (Photo by Andy Chan/Getty Images)

Tech companies are trying to revive their stock prices, but they must also wipe out recession strategies as companies take cost control measures and consumers hold back on spending.

The slowdown in demand is also adding to the storm clouds currently looming over technology companies.

“Our report suggests that nearly 80% to 90% of tech companies will show slowing growth in 2023,” Thill said.

Earnings multiples will continue to decline in the short term, before stabilizing, according to Till. In this regard, some portfolio strategists hope companies investing in the tech-heavy Nasdaq (^IXIC) will rip a stopgap and drop guidance this year.

Paul Meeks, Portfolio Manager at Independent Wealth Solutions Management, recently told Yahoo Finance Live: “And if I could see inflation being subdued, the Fed’s last rate hike, the most troubling numbers of a recession that could have been reflected in the forecasts of these tech companies, I’d be pretty It feels good, the technical name is correct.”

Some companies such as Amazon (AMZN) and Salesforce (CRM) have already started the year by cutting operating costs through layoffs. Meanwhile, semiconductor companies have already warned of declining demand and may eventually get ahead on the recovery curve.

“Probably the semi-finals and the Internet [stocks] Mr Till said: “I think there will still be some lag because the software has ongoing contracts.

Brad Smith is an anchor for Yahoo Finance. follow him on twitter @thebradsmith.

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