Joe Terranova doesn’t believe in the recent rally in a series of high beta stocks. As a result, the Virtus Investment Partners senior executive dumped Microsoft and Tesla shares during the quarterly rebalancing of the Virtus Terranova US Quality Momentum ETF, he told “The End Bell: Overtime” by CNBC on Tuesday. “Momentum isn’t in the market right now, so you’re relying more on quality,” he said. “It’s also one of the reasons why I don’t believe in the high beta nature of the current rally, and so many Nasdaq stocks are seeing this significant performance rebound after the drop we saw. received in 2022.” Terranova cited a “loss of momentum” that led him to abandon both stocks. He also attributed his departure from Microsoft to recent quarterly results that showed diminishing revenue growth. TSLA Mountain YTD Tesla stock is up nearly 41% in January The stock just ended a boom month after its worst year for the stock since 2008 . The S&P 500 rose 6.2%, hitting its best January since 2019 thanks in part to a rebound in high-beta names, such as the tech darlings of 2022. Several companies are active. January’s best performers include companies with the biggest declines in 2022. Tesla stock, for example, is up nearly 41% this month. Last week was the electric car giant’s best week since May 2013. Stocks affected in 2022, down 65%. But Terranova doesn’t expect this momentum to last, nor does he expect the Nasdaq Composite to continue to outperform after gaining 10.7% in January. “At high beta, I think it’s another bear rally,” he said.