(Markets Insider) Innovation stocks, loved by Cathie Wood’s Ark Invest, are attractively priced and present buying opportunities, according to JPMorgan’s Marko Kolanovic.
Kolanovic says the innovation stocks, already posting little-to-no profits, have crashed more than 80% after the pandemic boom and looking attractive.
The strategist cites the examples of Zoom Video, DocuSign, and Peloton as the beaten-down innovation stocks that are worth considering.
The JPMorgan strategist says the selloff in the fast-growing stocks has overshot to the downside. He says while big risks persist in the stock market, the opportunities are even greater.
Kolanovic opines that markets may spot these turning points sooner, calling investors to start accumulating holdings in such areas.
The strategists say that while commodity pressures could persist, the correction in bubble stocks is looking finished.
JPMorgan recommends that investors look for beaten-down opportunities in innovation, biotech, tech, emerging markets, as well as small-cap stocks.
The strategists still warn investors not to buy every beaten-down innovation stock. They warn that “not all assets are cheap” while cautioning investors not to ignore the slowing US economy and rising interest rates.
The word from JPMorgan adds a new thought for the market, with the banking giant having warmed up a bubble in innovation stocks in 2021. ARK Invest fund has declined by 60% since then.
NASDAQ 100 is up +0.94%.
