One financial advisor says that although tech stocks are trading at high prices, investors need to have positions in the sector. 

Brenda O’Connor Juanas, a senior vice president and financial advisor at UBS, said in an interview with BNN Bloomberg on Monday that following the significant run tech stocks had last year, there are “probably some overconcentration” issues that may concern investors. 

“When we think about pricey stocks, we mainly think about tech…But here's the thing, in 2024, investors just cannot afford not to be in tech,” she said. 

O’Connor Juanas added that the Magnificent Seven is viewed as an “expensive, untouchable group of stocks” that appeared to move higher last year. The Magnificent Seven group of stocks are comprised of Apple Inc., Inc., Meta Platforms Inc., Microsoft Corp., Nvidia Corp. and Tesla Inc. Last year, the group of equities drove significant gains for the S&P 500 Index, and the Index reached record highs in 2024.

According to O’Connor Juanas, the Magnificent Seven has not moved in unison this year

“We have four of these names up this year. Three of them are down,” she said. 

“We're looking at, what is the next leg of the beneficiaries looking at things like SAS names, PCs, servers, and also smartphones.”

To watch the full interview with Brenda click on the video above. 

With files from Bloomberg News.