Here’s the thing about market chaos: it creates opportunities for people who actually think long-term. While everyone else is panic-buying energy stocks because of the Iran situation, David Bianco—the Americas CIO at DWS Asset Management (yeah, the firm that oversees over a trillion dollars)—is doing something wild: he’s buying tech.
I know, I know. Big Tech has been getting absolutely hammered in 2026. But that’s exactly why Bianco thinks now is the time to jump back in. And honestly? His logic is pretty solid.
The main reason tech looks attractive right now is that it’s basically immune to the geopolitical chaos happening in the Middle East. While oil prices are spiking and energy stocks are having their moment in the sun, tech companies are just doing their thing. They’re still spending billions on data centers, still building out AI infrastructure, and still committed to their long-term AI bets. A slow economy? Doesn’t matter. These companies are locked in.
Even if the economy is very slow, this investment spending on the data centers is going to continue. Translation: tech companies aren’t cutting back on AI spending just because things are weird geopolitically.
And here’s the kicker—valuations are actually reasonable now. Nvidia and Microsoft, two of the biggest names in tech, are trading at notable discounts compared to the broader S&P 500. After weeks of getting beaten down, these high-growth stocks suddenly look like actual deals. I think it’s time to get back to tech stocks and appreciate the secular strength of their earnings.
But Bianco isn’t just bullish on tech—he’s also pretty bearish on everything else. He’s underweight on energy (yeah, even with oil prices elevated), transportation, consumer discretionary, housing, and automotive stocks. Why? Because he thinks interest rates are staying high for a while, and that’s going to keep a lid on anything that depends on cheap borrowing.
His economic outlook is basically: the Iran war is going to keep inflation elevated, government spending deficits are going to stay bloated, and interest rate cuts aren’t coming anytime soon. The 10-year yield is staying well above 4%, which means housing and auto recovery? Not happening soon. All those hopes about stimulus or rate cuts fixing things by spring? Bianco thinks that’s getting pushed back.
So what’s the play? Stick with the tech giants that don’t care about interest rates or geopolitical drama. They’ve got secular tailwinds (hello, AI), they’re spending money regardless of the macro environment, and they’re actually trading at reasonable prices after getting beaten up.
It’s a contrarian move when everyone else is chasing energy stocks, but that’s kind of the point. When the crowd goes one way, the smart money often goes the other.
