2017 was an impressive year for the technology sector. NASDAQ outperformed and FANG stocks got all the attention. Will these same tech stocks outperform in 2018? Or will there be a change in leadership. What can technology investors expect?
Paul Meeks, Chief Investment Officer of Sloy, Dahl & Holst and experienced technology investor, recently talked with Brian Sullivan of Trading Nation about all this and more. Watch the video to see the interview, or read below for a recap.
Meeks: I believe that technology is set to once again outperform the S&P 500 in 2018. The market will have a bit more of a subdue return than last year, but especially in key industries like public cloud computing, the strong are just going to get stronger.
Sullivan: One off-the-radar names you like is Altaba– why do you like this company?
Meeks: First, I really like Alibaba, and I’ve liked it for some time. Altaba looks technically better than Alibaba, when you look at the price charts. And that’s because it has investments in two important companies, including Yahoo Japan. So I like to own Altaba and Alibaba as well.
Sullivan: Do you think Bitcoin is the next gold? Or the next Alibaba? Or is it looking more like the next CMGI or ICGE?
Meeks: I believe blockchain technology is definitely here to stay. E-currency is inevitable. However, in the short-term, Bitcoin to me looks unstable and I always encourage investors to stay away.
Sullivan: Is it necessarily a bad thing that bitcoin might burst in the near future? Many companies, like Amazon, need to go through a cleansing of its investors to find its footing. Even though it does burn people, is it always necessarily a bad thing?
Meeks: Excellent point. I’d add to that, it will also help figure out who the winners are. Who’s going to come out of the crisis, so to say, and be the Amazon. So yes, I do think that it’s healthy, however some investors will get burned in the process.