Paul Meeks, a veteran investor has asked fellow investors to go ahead with investing in the tech stock. Meek's is famous for having run the largest technology fund during what we call the Dotcom boom. The investor has said that the fundamentals of the tech sector are relatively good as compared to the other ten sectors.
Meeks serves as the Chief Investment Officer at Sloy, Dahl & Holst. He said that this earnings season has shown to be very promising and that the fundamentals from this season are satisfactory. Despite his positive forecast for the tech sector, Meeks has warned investors to tread carefully. He feels that investors need to be disciplined while considering investing in tech fundamentals, especially since they are highly volatile. He has asked investors who already own the stocks to hold them and buy cautiously. It might appear as though the stocks will never drop in value but in reality, the stocks can have bad days and during these times, it can lead to highly significant opportunities.
Meeks especially favors FANG (Facebook, Amazon, Netflix, and Google) stocks. In fact, Meeks' portfolio includes stocks from all these corporations except for Netflix.
Among the FANGs, Meeks has said that he has a slightly greater preference towards Facebook and Google since they have had corrections that went beyond 10 percent. In fact, he even recently tried to buy these stocks during bad news. He had tried to buy Facebook stocks when Mark Zuckerburg was testifying before the Senate on how Facebook was handling all of the available user data.
Earlier this year, Meeks had stated that tech space could be facing a correction in the near future. Since the last time he spoke, Nasdaq, always leaning towards the tech side, has gone into a correction. Despite this, the index has shown an increase of 3 percent on a year-to-date basis.
He has advised to wait out the next controversy. He is of the opinion that both Google and Facebook seem to be quite robust although Google is slightly behind Facebook which has had a great quarter this year.
He urges investors to keep an open mind and to be aware of the fact that stocks are volatile. Paul Meeks had been responsible for managing the tech stocks of Merrill Lynch during the days when the Internet bubble was still booming.