Buy technology stocks on relative weakness, says Wells Fargo's Scott Wren

July 1, 2026 - 03:58

Scott Wren, a senior global market strategist at Wells Fargo Investment Institute, appeared on CNBC's "Squawk on the Street" to offer his take on how investors should handle their portfolios right now. His message was clear: do not chase the big winners. Instead, Wren advises buying technology stocks on relative weakness.

When asked whether the tech trade is broadly over, Wren pushed back against the idea. He argued that while the sector has seen massive gains, the underlying fundamentals remain strong for many companies. The key, he said, is timing and valuation. Investors should look for periods when tech stocks fall out of favor compared to the broader market, and use those moments to add positions.

Wren also addressed the broader question of portfolio rebalancing. He noted that many portfolios have become overweight in technology simply because those stocks have outperformed everything else. The natural instinct might be to sell and lock in profits, but Wren suggests a more nuanced approach. Rather than dumping tech entirely, he recommends trimming positions that have run too far and redeploying that capital into areas that have been left behind, such as energy or financials.

The strategist emphasized that the long-term outlook for technology remains positive, driven by trends like artificial intelligence and cloud computing. However, he warned that investors should not expect the same kind of straight-line gains seen in recent years. Volatility is likely to increase, and that is exactly when disciplined buyers can find opportunities.

For those wondering if it is too late to get into tech, Wren's answer was no, but only if you are willing to buy when everyone else is selling.