Todd Gordon, CNBC contributor and founder of New Age Wealth Advisors, joined Benzinga's PreMarket Prep show on Friday morning.
Gordon discussed the S&P 500 market weakness so far in 2022 and how he is positioning his clients' money heading into the second half of the year.
Bullish Or Bearish Outlook: Gordon said just because he's managing people's money doesn't mean he always needs to be bullish on the stock market.
"I'm defensive. We've got a good amount of cash, but there is a component, we live and breathe in the short to medium-term, but I'm still longer-term bullish," Gordon said.
He urged traders to not get bogged down in the massive amount of real-time information and fast-paced news headlines and lose sight of the longer-term picture.
Gordon said it's much easier to sell into market strength than it is to determine when to identify a re-entry into a long-term position.
"That's just a tricky game even for pros to play, but when at-home gamers who are successful in other areas of life and industry are trying to do that and they make a mistake, that mistake compounds into their retirement," he said.
How To Play It: Gordon said the SPDR S&P 500 ETF Trust SPY will certainly recover all its 2022 losses eventually, but predicting whether that recovery will happen in six months or five years is difficult at best.
For investors with five-to-10-year investment horizons, Gordon said he loves the longer-term outlooks for semiconductor leaders NVIDIA Corporation NVDA, Advanced Micro Devices, Inc. AMD, and Intel Corporation INTC. He is also bullish on Apple, Inc. AAPL.
"How do you not like Apple? The balance sheet is amazing — the cash they have," he said.
He also said he may be a buyer of Meta Platforms Inc META, which has had a brutal 2022 up to this point.
"It's now a value stock, but can they pull off the hardware play? I'm not quite sure," he said. He's also long other megacap tech stocks, including Microsoft Corporation MSFT and Tesla Inc TSLA.
Growth Vs. Value: Energy and materials stocks have been top performers so far this year, but Gordon said the value stock trade has started to weaken in recent weeks.
Gordon also mentioned Enphase Energy Inc ENPH and Live Nation Entertainment, Inc. LYV as two of his preferred growth stock investments.
"I think we're just getting a little too far out in front of our skis with inflation. We're at 42-year highs, a scary headline. So the Fed goes to 3% or 3.25%, which they're saying is going to happen. The last time 'they' told us something that's going to happen six to 12 months from now, it never works out," Gordon said.
Photo via Shutterstock
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.