After a rough 2022, some investors are flocking back to tech. The Nasdaq Composite has been the best-performing Wall Street index this far, having gained nearly 7% since the start of the year. But investment veteran Michael Landsberg is staying on the sidelines for now. “I think tech is dead for a while and you are better off selling rallies and tech to position yourself for things that you need,” Landsberg, partner and chief investment officer at Landsberg Bennett Private Wealth Management, told CNBC’s “Street Signs Asia” on Wednesday. “As we head into 2023, we believe it’s important for investors to sell unprofitable and high multiple stocks, as these types of stock won’t perform well during a recession and having extra cash on the sidelines is going to be crucial as we head into what will likely be a disappointing earnings season,” he added. He said he believes investors are in a “waiting game riding out this current storm” and they have to be selective when putting new money to work in the stock market. Stock picks Against that backdrop, Landsberg said he favors the consumer staples and health care sectors. The consumer is now “in a bad spot,” Landsberg said, pointing to “multi-decade high” credit card debt and “multi-decade low” cash levels. Consumer staples will therefore be a better trade than discretionary stocks as consumer spending power is reined in, he added. “I think discretionary gets hurt a lot more than staples if the consumer does get incredibly weak. Staples will get hurt too obviously if the consumer pulls back to the extent that we think, but it’s going to be hurt much less,” he said. Landsberg pointed to discount stores such as Costco and Dollar General, which he said have been “pretty solid throughout.” “I think people will trade down. They are still going to have to buy some of these things, and that’s going to be a spot that’s going to hold up better.” Within health care, his top pick is UnitedHealth — a company he describes as a “dominant player” in its field. He likes the company for its consistent revenue and earnings per share growth, as well as its “outstanding” dividend growth. Beyond these, Landsberg likes NextEra Energy for its leadership in renewable energy and “very profitable” regulated utility business. The company also enjoys strong dividend growth, he added. Rounding off his top picks is US consulting firm Booz Allen Hamilton, a company with “dominant market share” that counts the US government as a key customer. “Booz Allen is actually kind of the opposite of the consumer being stretched and tightened. The one customer that never seems to stop spending money is the US government. It is a leading player in consulting but more importantly in tech consulting, which is cybersecurity, artificial intelligence, and defense,” Landsberg said. “With cyberattacks around the world that’s going to continue, I don’t see them really having a problem getting more business and continuing the business that they have,” he added. He noted that its share price has pulled back from its highs, and now looks “attractive” as a longer-term investment.