Here’s why software stocks are finally priced for a comeback and this veteran strategist is buying

Fundstrat’s Tom Lee says software stocks are now worth buying after a period of underperformance, adding the sector to his top picks and recommending exposure via the iShares Expanded Tech-Software ETF (IGV). The S&P 500 Software Industry Index is down about 18% year-to-date versus a roughly 5% gain for the S&P 500, creating what Lee calls an asymmetric risk/reward over the next 12–24 months. He names Microsoft, Alphabet, Amazon, Salesforce and Adobe as his top software holdings and says a recovery in software equity values would ease downside risks in private credit and related asset managers. The call is constructive for software names and selected alternative-asset stocks, though Lee cautions investors to be patient as the rebound may take time.