Right now, a lot of investors remain as bullish as ever on the Technology sector. Even Hedgeye’s own historical back test says the current market environment of Quad 3 (growth slowing, inflation accelerating) should be a place to buy tech.
So why doesn’t Hedgeye CEO Keith McCullough like the sector right now?
As he explains in the clip above from The Macro Show, while tech has been rising, there are elements of the sector like software which look vulnerable. More importantly, McCullough says it would be unwise to chase something in what may be the last move of the economic cycle.
“I’m just not a believer,” McCullough explains. “I think software is a bubble. And I don’t believe the semiconductor guidance is accurate.”
“Tech is the most broadly-owned component of high-yield credit and the equity market.
Why would I go there?”
Watch the full clip above for more.