Investors Currently Seeking Technology and Health Care Stocks

For this week’s Sentiment Survey special question, we asked AAII members which industries or sectors they think are attractive buying opportunities in the current market environment. More than one out of four (27%) respondents say that the technology sector presents attractive buying opportunities. Other sectors named include health care (25%), consumer staples (14%), utilities (14%), financials (9%) and industrials (5%).

Overall, many respondents, regardless of which sector they named, stated that steady streams of cash flow and unwavering demand make these sectors more appealing than others. Additionally, 7% of respondents state that the consumer discretionary sector has several bargain opportunities. Many in this group specifically named travel, online retail and entertainment companies. They believe that this sector is highly undervalued in the current environment.

Here is a sampling of the responses: 

• “Consumer non-durables with dividend yields. Speculate in grocery stores as restaurants are put out of business. Online shopping companies like Amazon in an environment where people are afraid to go out.”
• “Grocery stores, streaming companies like Netflix or Disney and home gym apparatuses. Their bump is likely going to be short term. Bottom fishing would include airlines like Boeing or hotels.”
• “No particular sectors. Everything is beaten down. Lots of potentially good buys regardless of sector.”
• “Tech companies that have anything to do with working remotely. Some retailers like Costco, Target, Walmart and Amazon; streaming services Netflix, YouTube TV, Sling.”

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