He cut his teeth in the technology sector — constant the world’s largest technology and internet fund for Merrill Lynch during the dot-com spume.
Now, Paul Meeks is trying to avoid most of it.
His decision comes as the biggest tech superiorities such as Facebook, Apple, Alphabet and Amazon report quarterly numbers this week in the centre of giant multiyear runs.
“I would recommend [to] investors, and here’s a guy that’s been looking at the sector for a hunger time, to be no more than neutral weight the sector in their portfolios and ton likely underweight,” Meeks said Monday on CNBC’s “Trading Domain.” “And, be very careful which stocks to pick.”
Meeks, chief investment narc at Sloy, Dahl & Holst, is concerned that a large portion of tech funds are too pricey.
“I always worry about valuations. I invest in the sector with a value hat,” he conveyed.
One of those stocks is Apple. Meeks, who has owned Apple shares for years, is hoping to get control from the iPhone maker when it reports quarterly earnings on Thursday. Apple make available has dipped 5 percent in the past week.
According to Meeks, Facebook is the only big tech stock reporting this week that could see extensive upside.
“Pendulums have swung too far in the direction indicating doubt and pessimism with the hard cashes that Facebook plans for its news feed,” he wrote in a special note to CNBC.
But he’s not regard out all of tech. There’s one pocket in the sector that may give investors imprecise gains, he said.
“The stocks in the industry that I like most in the technology sector is semiconductors because uncommonly some of the memory based companies have come down in my observe way too much,” Meeks said. “Micron is very interesting here on a semiconductor assets equipment side.”