Investment Exec Lauds 'Beat-Down' Tech Stocks

The Dow Jones Industrial Average broke the 13,000 mark for the first time Wednesday. Does this historical high mean investors should fill their portfolios with momentum stocks? Or should they seek higher-quality long-term investments? Lincoln Anderson, chief investment officer at LPL Financial Services, offered his advice to "Squawk on the Street" viewers.

Anderson predicted that "We'll see some rotation into some of those beat-down technology stocks." When CNBC's Mark Haines challenged his "reasoning," the investment chief explained that traditional value stocks "have gotten pretty pricey" and the "real value" now lies in tech stocks. He added, "The downside risk is so low there -- they're hardly high-fliers."

The investment strategist gave the example of telecom stocks' activity last year: "Telecom had a great runup, about 35%, because it had been beat down."

Anderson cautioned that "momentum rules -- but you can get the big, sharp breaks." He said the energy and materials sectors in particular "look poised" for such breaks.