US investment tycoon Mikes: Technology stocks are still too expensive, I bet the Nasdaq will fall 20%
Paul Meeks, a well-known American technology investor, said he is waiting for the Nasdaq to fall 20% from a record high before making any major trades .
Meeks is known for managing the world’s largest technology fund at the time of the Internet bubble in the late 1990s. He believes that despite the correction this month, technology stocks are still too expensive.
Meeks said: “In the long run, I am a super bull of technology stocks. Nevertheless, my only concern and the only real concern is valuation. But this is a pretty big problem.”
As the Nasdaq may record its biggest weekly decline since March 20 this week, Meeks believes that another round of selling may occur before the end of the year, which will further lower the share prices of those large growth stocks.
He listed geopolitical risks as a potential catalyst for another round of selling, saying that his biggest concern for technology stocks is the escalation of geopolitical tensions during the US presidential election.
As a long-term Apple bearer, Meeks now says that the company faces the biggest challenge, and its stock price has far exceeded its multi-year growth prospects.
Meeks believes that the volatility of technology stocks will continue, and estimates that the Nasdaq Index has a half chance of falling into a bear market this year.