‘Uber bullish’ tech investor will not make large strikes till the Nasdaq corrects by 20%

Tech investor Paul Meeks is ready for the Nasdaq to fall 20% from its file excessive earlier than making any large strikes.

Meeks, who’s recognized for working the world’s largest tech fund throughout the late 1990s, believes tech shares are nonetheless too costly regardless of this month’s correction.

“For the long-term, I’m uber bullish on tech,” the portfolio supervisor at Independent Solutions Wealth Management advised CNBC’s “Trading Nation” on Thursday. “That being mentioned, my concern and actually my solely concern, is valuation. But it’s a fairly large concern.”

With the Nasdaq on track for its worst week since March 20, Meeks believes one other wave of promoting may come earlier than the tip of the 12 months, dragging common mega-cap development names even decrease.

He lists the contentious relationship between the U.S. and China as a possible catalyst for one more wave of promoting.

“Folks do not understand that the tech provide chain is intertwined between these two nations. It can actually by no means be separated,” mentioned Meeks, who added an escalation of rhetoric notably across the U.S. presidential election is his largest fear in regards to the tech sector.

His near-term cautiousness is a stark departure from the place he stood only a few months in the past. In early June on “Trading Nation, Meeks referred to the group as a secure haven play that was on the cusp of all-time highs. 

Now Meeks, a long-term Apple bear, sees the iPhone maker because the marquis tech title facing the most challenges. He believes the inventory worth is sharply overshooting its multi-year development prospects.

“Man, it obtained actually costly a few weeks again,” he mentioned. 

Meeks contends total tech volatility will persist, and he calculates there is a 50/50 likelihood the Nasdaq will fall into bear market territory this 12 months. 

Yet, he will not again away from his multi-year bullish thesis for the group.

“The fundamentals going into Covid, the basics throughout Covid and the basics popping out of Covid will show to be superior than the opposite ten sectors that make up the S&P 500,” Meeks mentioned.

Disclosure: Paul Meeks owns the shares talked about, and he isn’t shorting them.


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