Investor Paul Meeks is uninformed for a bear marketplace in technology.
Meeks, who’s famous for using a world’s largest tech account during a dot-com boom, sees 20% pullback risks flourishing as a coronavirus conflict spreads.
“There is some comeuppance due, and unfortunately we consider a coronavirus is that exogenous non-static that is a matter to take some of these bonds down,” a portfolio manager during Independent Solutions Wealth Management told CNBC’s “Trading Nation” on Friday.
The vital indexes finished a week meaningfully reduce after a array of new coronavirus cases sparked uninformed concerns over a tellurian mercantile slowdown. Tech bonds led Friday’s sell-off. The Nasdaq had a misfortune daily opening given final month.
Meeks, who has been avoiding a space, suggests Friday’s activity might be a tip of a iceberg.
If a conflict isn’t contained soon, Meeks believes a subsequent critical tech sell-off could be longer and deeper than his strange prophecy roughly a year ago.
Last April, he warned on “Trading Nation” a tech convene had left too far, too fast and he has been singling out Apple. He still owns a iPhone maker’s stock, though as an underweight.
“Apple is grossly overvalued,” pronounced Meeks, who has $700 million in resources underneath management.
Meeks might have a troublesome forecast, though he’s not presaging a recession.
“The fundamentals are clever in tech,” he added. “They are stronger relations to a rest of a sectors within a economy.”