Joe Terranova does not belief the current rally in a slew of high-beta shares. In consequence, the senior managing director at Virtus Funding Companions dumped shares of Microsoft and Tesla within the quarterly rebalance of the Virtus Terranova U.S. High quality Momentum ETF , he informed CNBC’s ” Closing Bell: Time beyond regulation ” Tuesday. “Momentum shouldn’t be current available in the market proper now, so that you’re relying extra on high quality,” he stated. “It is also one of many the explanation why I do not belief the high-beta nature of the rally presently, and plenty of the Nasdaq shares which can be seeing this exceptional efficiency restoration after the decimation that they acquired in 2022.” Terranova cited a “lack of momentum” amongst his causes for ditching each shares. He additionally attributed his rotation out of Microsoft to current quarterly outcomes exhibiting a deceleration in income progress . TSLA YTD mountain Tesla shares surged practically 41% in January Shares have simply wrapped a blowout month after the worst 12 months for shares since 2008 . The S & P 500 surged 6.2% to notch its finest January since 2019 due partly to a rally in high-beta names, like 2022’s battered tech darlings. A few of January’s finest performers included corporations that suffered the sharpest declines in 2022. Tesla shares, for instance surged practically 41% this month. Final week was the EV large’s finest since Might 2013 . Shares suffered in 2022, slumping 65%. However Terranova does not count on this momentum to final, nor does he anticipate continued outperformance from the Nasdaq Composite after its 10.7% surge in January. “In excessive beta, I believe it is one other bear-market rally,” he stated.