Morningstar's Sekera: Technology is now trading 20% below fair values

Dave Sekera, chief U.S. market strategist at Morningstar, says that the beating that technology stocks have taken has made the sector ideal for patient investors hunting bargains. He says technology as a sector is now trading at a 20% discount to the firm's composite of fair values, and there have only been two other times since 2010 when tech has been that undervalued. As a result, he's looking at some big-name companies — including a few Magnificent Seven stocks and some beaten-down software names — as buys now. Author John Coleman discusses his new book, "Good Money: Six Steps to Building a Financial Life with Purpose," which goes beyond just the money aspects to look at the work and social elements that will help make people happier and healthier, particularly as they transition more towards the retirement and slow-down phases of life. Also, Chip Lupo, analyst at WalletHub, goes "Off The News" discussing Federal Reserve data released earlier this month which showed that total consumer credit increased at a 2.2% annual rate in February. WalletHub's analysis showed that, if the numbers are not adjusted for inflation, credit card debt as of February 2026 was at a new record high, topping last February by 3%. (Without the inflation adjustment, total credit card debt in February 2026 was effectively flat year over year.)

Journalist Kit Chellel discusses his new book, released today, "Lucky Devils: The True Story of Three Rebel Gamblers Who Beat the Odds and Changed the Game," the tale of 1970s gamblers who applied early computer technology to  gambling at a time when the smallest computers were still the size of a suitcase. They created "advantage playing," and faced issues with casinos, the mob and more, but also laid the groundwork for a lot of what is happening now and being revisited in prediction markets and more. Heather Hunt-Ruddy, divisional president at Wells Fargo Advisors, discusses the firm's recent white paper on building and maintaining generational wealth, and how to accomplish transfers without spoiling the next generations or setting the grandkids up to become spoiled and irresponsible. In the Market Call, Joe Rinaldi, president and chief financial officer at Quantum Financial Advisors talks about both individual stocks and ETFs, discusses when he leans toward using one over the other, and says he is looking for opportunities now where he is being paid to wait for the market to recover and move back toward record highs.

Abe Sheikh, chief investment officer at Cordoba Advisory Partners, says that if tensions in Iran cool and oil prices settle down — which the futures market is saying is likely by year's end — says that the current spike in inflation is temporary and the risk of runaway inflation is much lower than it was during Covid times. With that in mind, he thinks current events are more setting up investment opportunities than stopping investors and getting them to panic away from equities and heightened volatility. With consumer sentiment at record lows — but consumer confidence improving ever so slightly — in March, Vijay Marolia, chief investment officer at Regal Point Capital, discusses why feelings make headlines but fundamentals make for better investment prospects. That's why he's leaning into some of the market's most beaten down sectors; he discusses his take on the private credit market and on how to lean into it for better yields without getting tripped up by the current-event risk, as well as what he expects from the Federal Reserve as it increasingly finds itself pinched between its dual mandates. David Trainer, founder/president at New Constructs takes a victory lap on his pre-IPO take that put $BIRD in #TheDangerZone before it even launched. Plus, Chuck answers a listener's question asking for clarification on how sequence-of-inflation risk works and how it differs in certain key ways from sequence-of-return risk. He has previously said, many times, that his big fear personally is sequence-of-return risk, and has said lately that prolonged inflation should have many people worrying about how it will impact their retirement if it remains sticky for the next few years.

Jeff Krumpelman, chief investment strategist at Mariner Wealth Advisors, says that the economy is on solid grounds and that earnings expectations are up, which has prompted him to stand fast on the 7,700 target he put on the Standard & 500 entering the year, and he expects the market to bounce back hard once headlines ease up and investors get more clarity. Krumpelman says he expects the market to broaden out, but he says it will be a "RAD" year, for "risk awareness and diversification," noting that investors will want to get portfolios back to their asset allocation plans and diversify to avoid concentration risk.  With the market kicking business-development companies in the teeth, John Cole Scott , president of CEF Advisors — and chairman of the Active Investment Company Alliance — grinds through his firm's "artificial-intelligence risk scoring" data to find BDCs that have been hurt by headlines without holding tainted portfolios. The result, he says, are two funds that have seen their valuations — but not their underlying portfolios — hurt by the headlines, making them underpriced value plays now. In the Market Call, James Abate, head of fundamental strategies for Horizon Investments — portfolio manager for the Centre Funds — is also looking for areas of the market that have solid long-term prospects but that are facing current disruptions.

Mark Yusko, chief investment officer at Morgan Creek Capital Management, says global uncertainty "is at the highest level it has ever been," which is why investors have been leaning into quality and other factors they understand and are comfortable with, but he says value-oriented investors should be looking for less-traveled paths, searching for opportunities where they feel really uncomfortable "and where it's hard to pull the trigger." Yusko discusses ETFs in the Market Call, but also talks current events, noting that "Volatility is disagreement about future outcomes." With the "ETF of the Week," Todd Rosenbluth, head of research at VettaFi, turns to an actively managed municipal bond fund as a tax-time diversion, but he notes that the low-cost fund with a solid tax-free yield deserves long-term consideration too. Jamie Hopkins, co-author of "Your Retirement Sketchbook: 125 Retirement Planning Lessons from Financial Experts," discusses the new book, holes many people leave in their financial planning and how to take charge of the process and fill in the gaps.

Wayne Wicker, president of Opal Capital, says investors "are bombarded every day with news items," and while those things are interesting, they're also "meaningless" for most people with a long-term horizon. He suggests "looking through the noise," and notes that in the cacophony of current events, he sees opportunities in mid-cap stocks and in some areas and individual issues where the market has overreacted in recent weeks. Personal finance journalist Brian O'Connor discusses the importance of looking more deeply into target-date funds — a default-choice investment that most investors pick without giving it much thought — noting that the way those funds work could leave investors subject to significant sequence-of-return risk, particularly if they are Baby Boomers planning to retire soon. O'Connor, who wrote about the subject in a recent New York Times piece, isn't saying investors should avoid target-date funds but instead advocates for a level of management and involvement that many users don't normally apply to these one-size-fits-all portfolios. Geoff Garbacz, principal at Quantitative Partners, discusses how record levels of short interest are changing the market broadly and the prospects for a lot of stocks, as he goes both long and short in the Market Call.

Joseph Shaposhnik, founder/chief executive officer of Rainwater Equity — manager of the Rainwater ETF, which focuses on buying into recurring revenue models at reasonable prices — says that the software industry "is embroiled into a controversy that is very difficult to dispute until we have [multiple] quarters of these businesses putting up very, very strong results." But because he expects those results from software firms, he thinks the market has beaten up software stocks as if they are all going to fail, making them bargain priced now with a potential rebound in sight. Shaposhnik talks about how recurring-revenue stories lead to more predictable results, which should give investors some comfort against uncertain times. With the average price on a new car now hovering near $50,000 at a time when Americans are being squeezed by higher prices at the gas pump, Robert Steenburgh, chief executive officer at AutoPayPlus talks about how consumers should be dealing with the challenges of financing a car, particularly at a time when the average monthly payment is now $735 — and more than $1,000 for 20 percent of new-car buyers — with teh average loan term now stretched to 84 months. Another way that consumers are finding their finances stretched is in home buying, and Ted Shanahan, chairman of Blueprint Financial Group, discusses the latest data from Northwestern Mutual's 2026 Planning & Progress study, which showed that parents now play a bigger role in helping children buy homes, and say that providing that assistance is as or more important than paying for college. Plus, Chuck answers a listener's question about closed-end fund discounts, how they put stocks on sale and why discounts are appealing even when their benefits aren't readily evident when researching a fund or holding it in a portfolio.

Neeraj Khemlani discusses his new book, "The Coffee Can Investor: A Stock-Picker's Journey to Build Generational Wealth" — out this week — which tells the story of picking a few stocks and stashing them away in the same way that some people hide valuables for decades in old coffee cans. It delves into portfolio manager Matt Ankrum, who took the practice and super-charged it by researching hundred-baggers — long-term winners that deliver above-market returns — who aims to turn his own children into centi-millionaires by the time they retire. In "The Week That Is," Vijay Marolia, chief investment officer at Regal Point Capital, discusses how he has responded to volatility in oil markets since war started in Iran by going long on oil futures using a popular ETF and shorting airline stocks. Marolia also looks into the investing opportunities in space, noting that they go far beyond the current Artemis II moon mission and the public stock launch of SpaceX, which is expected to give the company a market capitalization beyond $2 trillion when shares launch this summer. Peter Tuz, chief executive officer at Chase Investment Counsel -- co manager of the Chase Growth Fund -- talks about finding growth stocks at reasonable prices now, and why he mostly has rotated away from the Magnificent Seven stocks in favor of small companies with solid long-term potential that the market has yet to recognize.

Ryan Isherwood, chief investment officer at Significance Capital, says that the stock market's momentum has not been broken even as it backed away from recent record highs, which means that stocks have been correcting since last October. That makes it more of a time correction — which can last longer — than a short, steep price drop. That said, Isherwood noted that there are strong signs that the market could resume its long-term upward trend and bullish bias once the geo-political pullback ends as there is more clarity in the headlines. Yelena Maleyev, senior economist at KPMG Economics, discusses the March 2026 Outlook Survey from the National Association for Business Economics, released today, which showed that  the consensus forecast among economists has deteriorated sharply in the last few weeks, with two-thirds of the group expecting a reduction of GDP this year, and in many cases that economic activity slowdown will be big, but will stop short of recession conditions. Nearly 70% of the economists said the broadening of geopolitical conflicts is the "greatest downside risk to the  economy over the next 12 months;" just 8% felt that way about geopolitical worries just three months ago. Todd Rosenbluth, head of research at VettaFi, turns to a diversified natural resources index fund as his "ETF of the Week," noting that a multi-sector approach involving upstream energy companies, agricultural companies and more can be a good diversifier — while providing a decent yield — in current conditions. Plus Matt Weyandt, a client portfolio manager on the listed real assets team at Nuveen, discusses how a "Halo theme" — heavy asset, low obsolescence — positions investments in real estate, infrastructure and commodities to perform well despite global headlines that are buffeting markets. Specifically, Weyandt notes that location-specific hard assets  with contractual income streams are built to deliver regardless of the broad market conditions.

David Chavern, president and chief executive officer for the American Council of Life Insurers (ACLI), discusses how insurance companies — who have been investing in private credit situations long before those investments were available to the general public — are withstanding the risks that critics say could cause the next financial crisis. Chavern also discusses the changing role of insurance, and specifically annuities, in financial planning as the last generations to get pensions are reaching retirement age and the next group of savers is looking for consistent, stable income later in life. Howard Dvorkin, chairman at Debt.com, discusses "pig butchering," a sophisticated financial scheme where criminals build a relationship with victims online and then persuade them to invest in fake crypto or other fraudulent schemes. The bad guys' efforts have been bolstered by the development of artificial intelligence, making it easier to connect with targets — often the elderly or young, naive newbie investors — for them to "fatten them up" before slaughter.   Stash Graham, managing director at Graham Capital Wealth Management, talks stocks in the Market Call.  In an issue related to the private-credit concerns discusses in the Chaven interview, Graham takes a particular interest now in some of the business-development companies that have been tarnished by recent lending issues and portfolio re-valuation problems, noting that their are solid long-term business reasons to ride out the current headlines expecting a long-term payoff.