For tech investors, valuations remain reasonable. One year after the 2000 tech bubble, tech stocks traded at a 200% premium to the market with many of them struggling to earn a profit.  Big-name tech stocks of today trade around a 30% premium to the market.  Most of them are very profitable and are growing earnings year over year in excess of 30% to 50%.

Financials are another area of the market that look attractive to me. Financials benefit from a rising rate environment.  The Federal Reserve has reiterated their plans to normalize rates, and as they do, member banks will follow suit resulting in increased earnings for the financial sector.

For investors that have a longer time horizon and are able to tolerate some volatility along the way, tech and bank stock valuations appear more attractive.

Any opinions are those of J. Greg Garner and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Asset allocation and diversification do not guarantee a profit nor protect against a loss.