Technology Overowned

I believe the technology sector is over owned. In every investor and portfolio manager survey I have come across recently technology is the most overweighted sector. I believe that the sector will underperform in the coming months as a result.

Many of my longs are in the tech sector. I believe my names will outperform the rest of technology because they are among the least loved names in tech. However, they will likely be dragged down somewhat. I plan to move some of my hedges to the Nasdaq 100 in order to try and mitigate this.

1 comment:

A Look At The Tech Sector said...

[...] These giant cash hordes are coming into focus as a result of investors preference for dividends. In mid-April I wrote that technology was over owned and set to under perform. I now think that technology will perform [...]