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After a rough 2022, some investors will return to technology. The Nasdaq Composite has been Wall Street’s best-performing index so far, up nearly 7% since the start of the year. But investment veteran Michael Landsberg remains on the sidelines for now. “I think technology has been dead for a while and you’re better off selling rallies and technologies for things you want,” Landsberg, a partner and chief investment officer at Landsberg Bennett Private Wealth Management, told CNBC on “Street Signs Asia.” Wednesday. Going into 2023, we believe it is important for investors to sell unprofitable and large stocks, as these types of stocks do not perform well during their downturns, and having extra cash on the side will be critical as we move in. What could be a disappointing earnings season,” he added. Investors believe in “waiting for this current storm” and should choose when putting new money to work in the stock market. Stock picks Against that backdrop, Landsberg said he favors the consumer staples and healthcare sectors. The consumer is now “in a bad place,” says Landsberg, pointing to “multi-decade high” credit card debt and “multi-decade low” cash levels. Therefore, consumer staples will be a better trade than discretionary stocks as consumer spending power is renewed, he said. “I think if the consumer weakens dramatically, the thing that will hurt more than the staples. If the consumer pulls back as much as we think, Staples will be hurt a lot, but it will be hurt a lot less,” he said. Landsberg pointed to discount stores like Costco and Dollar General, which he said were “very strong across the board.” “I think people will trade it. They still have to buy some of these things, and that’s going to be a better place to hold.” In health care, his top pick is UnitedHealth — a company he describes as a “dominant player” in the field. The company enjoys consistent revenue and earnings per share growth as well as “impressive” dividend growth. Beyond those, Landsberg likes NextEra Energy for its leadership in renewable energy and its “highly profitable” regulated utility business. The company is in the midst of strong dividend growth, he said. Rounding out the top picks is US consulting firm Booz Allen Hamilton, a company with a “dominant market share” that counts the US government as a key client. “Booth Allen is the opposite of a client stretch and squeeze. One client that never seems to stop spending money is the US government. It’s a leader in consulting, but more so in technology consulting, which is cyber security. Artificial intelligence and defense,” Landsberg said. “With cyber attacks around the world, I don’t see many businesses having trouble finding and continuing to do business,” he added. He noted that share prices have pulled back from their highs, and now look “attractive” as a long-term investment.
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