The AI ‘picks and shovels' trade still has legs: Strategist

• Markets will eventually settle down and refocus on fundamentals; don't panic and use volatility as an opportunity.
• Look for buying opportunities in oversold tech names (e.g., Microsoft, IBM, Nvidia, Salesforce, ServiceNow), as well as industrials, basic materials, and financials.
• Rising oil prices, inflation, and geopolitical tensions (U.S.-Iran talks, midterm elections) will continue to cause market nervousness and require investor caution.
• Tech layoffs are attributed to over-hiring during the pandemic, not a fundamental decline in demand for AI or tech services.

The strategist advises investors to remain calm and strategic amidst market volatility, viewing pullbacks as buying opportunities. He suggests focusing on oversold tech names, industrials, basic materials, and financials, while avoiding 'FOMO' trades. He believes tech layoffs are due to over-hiring, not a decline in AI demand, and that markets will eventually refocus on fundamentals despite ongoing geopolitical and inflationary pressures.