Paul Meeks, Chief Investment Office at Sloy, Dahl & Holst, recently talked with Brian Sullivan of Trading Nation about what we can expect for technology next year. Watch the video or read below to hear his predictions, including his thoughts on bitcoin.
Will the Same Big-Name Tech Stocks Outperform in 2018?
I do think technology will outperform the S&P 500 next year, though perhaps with a more subdue return when compared with 2017. They may not outperform by as much as last year, but I do believe they will outperform...particularly in key industries like public cloud computing.
Why Do You Think They Will Continue to Outperform? Who Is Left to Buy?
There are a few names– both Facebook and Google come to mind. When you see their repetitive quarters of major earnings beats, the PE ratios are actually not egregious at all. Some tech stocks do have egregious evaluations, but I think Google and Facebook are actually fairly reasonably priced.
What About Altaba? Do You Like this Company?
A similar company is Alibaba and I’ve liked this one for a long time, but I also like Altaba because it looks technically better. So I own Altaba and Alibaba as well.
What Do You Think of Bitcoin?
I believe that blockchain technology is here to stay. No question in my mind that e-currency is inevitable. However, in the very short-term, bitcoin does look like a bubble that’s about to burst.
So although I do like it long-term, some of these plays look very scary and as far as investors go, I’d stay away from them for now.
But Are Bursts Always Necessarily a Bad thing?
You’re correct, this is actually very healthy. Going through a kind of cleansing to figure out who is going to be the dominant one– who will come out of the crisis and be the Amazon or the Google. So yes, I actually do think it’s very healthy.