It has been an epic run of growth for more than two years for tech stocks. Hedgeye has been bullish on the sector throughout its run higher, and our quantitative Risk Ranges continue to signal the Nasdaq (QQQ) is in a bullish trend.
Here comes the “but” from Hedgeye Director of Research Daryl Jones:
“You are threading the needle a little bit if we have the Quad 4 (i.e. Growth and Inflation slowing) rollover that we’re predicting,” Jones explains in the clip above. “Tech is a sector that will underperform [in that environment]. Selling high and buying low is a fair strategy, but I think you want to think about underweighting as you head into Q4.”
Bottom line: Tech is still flying high, but a rollover could be coming soon.
Watch the full clip above for more, including additional comments from Hedgeye Macro analyst Ben Ryan.