Nasdaq to beat the broader market this 12 months: Tech investor Paul Meeks

Know-how investor Paul Meeks is now not avoiding the group that made him well-known on Wall Avenue.

Meeks, who ran the world’s greatest tech fund for Merrill Lynch within the late 1990s and early 2000s, expects the tech-heavy Nasdaq to finish the 12 months not less than 10 p.c larger.

“I am beginning to creep out of the bunker, he mentioned Friday on CNBC’s “Trading Nation.” “I might say that whenever you get to December 31 of this 12 months, the Nasdaq will likely be up double digit in calendar 2019. And, it would outperform each the Dow and the S&P[500 Index] .”

It is a materials shift for Meeks. Late final 12 months, he was telling investors that the majority tech names had been “uninvestable.” Now, he believes tech valuations have come down sufficient to start out placing cash to work once more — so long as it is finished with vigilance.

“Some corporations are doing fairly properly, and a few are giving very combined even bearish steerage. So it’s important to be tremendous cautious,” he mentioned.

For instance, with regards to FANG names Facebook, Amazon, Netflix and Alphabet, Meeks owns all of them. Nonetheless, he would not add positions to all of them proper now.

“The one one I believe I might purchase right here as a result of I believe it’s the greatest among the many group mixture of valuation assist and upside potential is Alphabet,” he mentioned.

In keeping with Meeks, tech shares may nonetheless see some near-term turbulence particularly across the U.S.-China commerce struggle deadline on March 1. Nonetheless, the funding image ought to start to enhance after that.

“A whole lot of the positive aspects are going to come back between the summer time and the tip of the 12 months — a second half phenomenon,” Meeks mentioned.

For the week ending Friday, the Nasdaq is up a half p.c, and it stays in correction territory.

Author: Maxwell C.

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