Top trades headed into the new year are encircling the Big Tech names, but not in the way many might think.
That’s according to Bank of America strategists, who laid out several big plays they see going into 2024. Among them would be buying the investment-grade bonds of technology companies. That would give investors exposure to balance sheets but not their earnings, say a team led by Michael Hartnett.
The latter part of this year has seen money pouring into bonds issued by (almost all) of the Magnificent Seven companies chasing yields that have been climbing amid bets on Federal Reserve rate cuts. Apple UK:AAPL bonds have seen equity-like returns in the past month.
As for the stocks of the Seven — also including Amazon.com
AMZN,
Meta
META,
Tesla
TSLA,
Nvidia
NVDA,
Alphabet
GOOGL,
and Microsoft
MSFT,
— that have dominated equity returns in 2023, the strategists are less keen on a straightforward bet.
Hartnett and his team see a big play for next…
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