Tech stocks have been out of favour this year as the Federal Reserve continued to lift rates. But that doesn’t mean the space is entirely out of opportunities for now, says Jon Maier of Global X ETFs.
Maier likes EV stocks within the tech space
Maier recommends investing in the subsectors of technology with long-term opportunities and tailwinds that could unlock meaningful upside moving forward.
One in particular that he’s bullish on is the EV space. On CNBC’s “Worldwide Exchange”, Maier said:
Some of the tailwinds that’ll drive performance over the next several quarters are in EV space – electric vehicles and ecosystem surrounding electric vehicles. Every market is increasing its sales of EVs and that’ll continue going forward.
EV stocks, in the long run, are what he called “certainties”. Ecosystem here refers to the infrastructure companies like the battery manufacturers or the charging station operators.
EV stocks will benefit from Inflation Reduction Act
“DRIV” – the Global X Autonomous & Electric Vehicles ETF is currently down over 25%, which makes these stocks more attractive from the valuation perspective as well.
Maier likes the EV stocks also because of the Inflation Reduction Act that signals aggressive investments in this space over the next ten years (find out more). Interestingly, though, equities are not the only means of playing the EV space, he added.
Lithium – the element that’s used in batteries to create the power for electric vehicles is in short demand. So, we’re constantly talking about Lithium because we think it’s a great commodity to own at this point.
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