• Tech stocks sold off last week as 10-year Treasury yields rose.
  • But the stocks are still good investments, argues Luke Lloyd of Strategic Wealth Partners.
  • However, Lloyd said investors seeking alpha should look to individual small-cap names.

Investors sold off mega-cap tech stocks last week as 10-year Treasury yields rose to pre-pandemic levels, a sign of faith in the economic recovery to come.

According to Luke Lloyd, an investment strategist at Strategic Wealth Partners, such a pullback is a healthy thing near all-time highs, and investors shouldn’t sweat it.

At the end of the day, tech stocks are still a good investment, he said, and they can justify the high valuations that have led some to cry of a bubble. Especially consider valuations of some stocks tied to an economic reopening, like airlines and cruise lines.

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