Investors Will Sell Financials, Buy Tech Stocks

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By Whitney Kisling

Oct. 17 (Bloomberg) -- Portfolio managers will sell financial stocks when they rise to start buying technology companies such as Cisco Systems Inc., according to Ralph Acampora, a partner at Altaira Wealth Management.

“They’re going to get out of the financial stuff,” said Acampora, who retired in 2007 from Knight Capital Group Inc. as one of Wall Street’s best-known technical analysts, before returning this year to manage money at Geneva-based Altaira. “What are they going to rotate into? Simple, something they don’t own. What don’t they own? Remember the bubble -- technology crashed and burned.”

Investors will take advantage of financial stocks’ volatility, using any gains in those companies to sell American International Group Inc., Bank of America Corp. and General Electric Co., and shift into stocks such as Cisco and Oracle Corp., Acampora said at a Security Traders Association conference today in Scottsdale, Arizona.

While the Standard & Poor’s 500 Index of financial companies has almost tripled since the S&P 500 reached a 12-year low on March 9, it’s still down 28 percent since Sept. 12, 2008, the last trading day before Lehman Brothers Holdings Inc. filed for the biggest bankruptcy in history.

Acampora’s four-decade career as a technical analyst, making predictions based on price and volume chart patterns, included stints at Prudential Equity Group LLC, Smith Barney and Kidder Peabody & Co.

In addition to technology stocks, Acampora said he’s bullish on railroad stocks and oil-drilling companies. He reiterated a call for a correction in the Dow Jones Industrial Average, which he expects to be followed by a surge of 25 percent.

To contact the reporter on this story: Whitney Kisling in Scottsdale, Arizona at wkisling@bloomberg.net.

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