Market Expert Clayton Triick on How Traders Evaluate Tech Stocks Post Earnings

Why It Matters

If markets get the Fed easing Trick anticipates, income-seeking investors should consider overweighting selective fixed-income opportunities—particularly mortgage-related securities—while reassessing exposure to high-PE tech and corporate credit. This positioning could materially affect portfolio risk and return as rate expectations and sector leadership shift.

Summary

Stocks opened lower after hotter-than-expected PPI, accentuating a February choppiness and continued rotation out of richly valued tech into cyclicals like energy, materials and industrials. Clayton Trick of Angel Oak said his firm—though fixed-income focused—has been watching equities and expects broader volatility and diversification in 2026. He argued US fixed income is attractively valued relative to equities, favoring agency and non-agency mortgage-backed and asset-backed securities over corporate credit, where he sees more risk. Trick also expects roughly three Fed cuts later this year, which would be a tailwind for bond returns.