Despite calls from some analysts to reconsider tech stocks, John Ricciardi of Deuterium Capital said it’s not time to buy yet. The tech sector has seen a massive sell-off this year as investors pivot to value from growth names, driven by currency tightening, recessions and other risks. Ricciardi, the company’s top fund manager and head of global asset allocation, told CNBC on Friday that markets could see “another tech crash.” “It might not be out of the ordinary,” he told CNBC’s “Squawk Box Europe.” “We’ll have to confirm in a few months, but it doesn’t look good for September and October.” Tech stocks have seen a brief rally this week, with Nasdaq posting its third consecutive positive session on Thursday. But on Friday, Nasdaq futures fell back into the negative territory, falling 1.87% at the close as investors recognized a fresh round of corporate earnings and disappointing results from Snap. Indicators such as US retail sales, global exports and factory orders appear to be contracting in the coming months, said Ricciardi, which should spell bad news for tech companies like Apple and Microsoft. Consumer spending held firm during June’s inflation surge, with retail sales up slightly more than expected for the month, however, a University of Michigan report shows consumer sentiment still relatively optimistic. “To us, it looks like investors will be relieved and intrigued by current valuations for this month and next, but then new concerns, especially falling earnings. and recession … will become apparent,” Ricciardi said. The Nasdaq Composite is down more than 20% so far, sending the tech-heavy index into bear market territory and FAANG stock is also trading at a deep discount. Alphabet is down more than 20% for the year, while Meta is down more than 45% in the same period. Ricciardi said Deuterium Capital is pivoting to sectors like healthcare and telecommunications. He added that the company has pivoted away from energy stockpiles. Industry rotation will remain a major investment theme as US tech stocks, still highly valued despite the sell-off, are likely to correct again, this time alongside energy stocks. , as the global cycle slowed markedly towards the end of Q3 2022 and investors turned in favor of stocks of interest. -sensitive sectors like healthcare,” Deuterium wrote in its outlook. myself for the third quarter. In the healthcare sector, Ricciardi said pharma stocks like Pfizer and Merck may still have “a lot of room to run.” In telecommunications, he picked the likes of AT&T, Verizon, and Sprint (now part of T-Mobile). “So we’re going to be in what I call interest-sensitive end-of-cycle securities,” Ricciardi said. “It might still be a little early to go in and buy staples and in such things interest-sensitive utilities.” – Jeff Cox of CNBC contributed to this report.