The market has had a very sharp rebound from last year — and part of that is because "we had a significant overweighting in technology going into the year and we’re starting to reap the rewards of that," said David Katz, CIO of Matrix Asset Advisors.
“Tech has vastly outperformed the overall market this year so we’re not expecting that kind of outperforming going forward,” Katz told CNBC.
“We think it’s still going to be a good place to make money, but it’s not going to be up another 25 percent if the market is only up 5 percent.”
Katz said he is a fan of the bigger tech companies. Despite weakened consumer demand, he said business will return and there will be a decent revenue cycle in the next 6 to 9 months.
“We think it’s going to be a PC-centric rally, we think there’s going to be an upgrade cycle of Microsoft Windows 7."
So he believes "Dell , which has done well, has a 50 to 100 percent upside.”
“We also like Microsoft ,” he said.
Katz added that although Cisco’s earnings numbers on Wednesday afternoon didn’t “blow people away,” the company is poised to perform better after a short breather.
Katz, Katz’s family and firm own shares of Dell and Microsoft.