A tech correction is 'inevitable,' investor Paul Meeks warns (via TradingNation)
Paul Meeks predicts a near-term correction will hit tech stocks.Meeks, who's now a portfolio manager at Independent Solutions Wealth Management, cites two chief factors for his negative outlook: U.S-China trade war fallout and the economic growth slowdown.
"My typical tech company is deeply embedded in a supply chain between the two nations," said Meeks. "We've also started to see a decline in the economic growth rate particularly abroad, less drastic here in the states. But a lot of people don't realize that tech products and services, whether that be sold to the enterprise or sold to the consumer, you know typically are cyclical."Despite his pullback warning, Meeks plans to put money to work.
"I always have my eye on my favorite tech names, and I look for opportunities to buy them on dips," he said.However, Meeks indicates one widely held tech stock that's been dominating the headlines won't be on his pullback shopping list:He plans to reduce his already underweight Apple position and take profits.Apple's iPhone 11 launch"I would like to shift out of those names in this kind of environment and try to find some deals in software," he said.
"Something like Salesforce.com, you can get a 100% software business that is growing faster and is much more profitable than anything that Apple is doing," said Meeks.
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