Defiance ETF’s CEO: Mega-cap stocks are cheaper and still attractive to buy
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Although interest rates are going to be âa nuisance for a little while longer,â the mega-cap stocks with strong balance sheets are not going to be impacted too much in the short term, said Sylvia Jablonski, CEO, CIO, and co-founder of Defiance ETFs.
Looking at the 10-year rate, she said, that will definitely impact growth companies, but the mega-cap stocks (META), (NASDAQ:AAPL), (AMZN), (MSFT), (GOOGL) are still attractive to buy even in the hawkish environment.
âLonger-term, we have to understand that weâre probably towards the end of this hiking cycle,â said Jablonkski in a CNBC interview on Tuesday. âWe had four cuts on the schedule for next year, now thatâs down to two, but there are still cuts in the schedule. Weâre coming to the end of this rate nightmare.â
Apple Inc. (AAPL) has fallen about 12% from its peak performance this year, she said. And there are a few other headwinds, including possible restrictions in China. But âconsumers are starting to upgrade to the more premium models (iPhone 15, iPhone 15 Pro). Millions of users will be captured into the Apple ecosystem, which has incredible high margins.â
The company is down to 26 times the earnings, versus 30 times, âso there is a little bit of a discount there.â

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