Why iCapital's Amoroso Sees Software as Q1 Contrarian Play

The video discusses a contrarian investment strategy, suggesting a shift from last year's popular trades in banking and semiconductors to underperforming sectors like technology and cybersecurity. It highlights the impact of higher interest rates on tech valuations, particularly in software and cybersecurity, where stocks are trading significantly lower despite strong fundamentals. The speaker advises using market volatility to invest in undervalued tech stocks with strong growth potential, especially in cybersecurity, which is expected to outpace overall tech spending.

What is the speaker's view on the current rally in banks and reopening trades?

• They think it is a continuation from last year.

• They believe it is a new trend for this year.

• They suggest increasing investments in these areas.

• They recommend avoiding these sectors entirely.

Why are software valuations under pressure according to the speaker?

• As a result of new government regulations.

• Due to increased competition in the market.

• Because of higher discount rates affecting cash flows.

• Owing to a decrease in cybersecurity spending.

What is the current trend in cybersecurity stock prices?

• They are trading significantly lower than their 52-week high.

• They have increased due to higher tech spending.

• They are at an all-time high.

• They have remained stable over the past year.

What does the speaker suggest doing during the current market volatility?

• Investing in high-performing sectors.

• Focusing solely on banking stocks.

• Rotating into underperforming sectors with strong fundamentals.

• Avoiding any new investments.

Which sectors does the speaker recommend adding to a shopping list?

• Banking and reopening trades.

• Software and cybersecurity with strong fundamentals.

• Real estate and commodities.

• Automotive and energy sectors.