Big tech’s hot streak may be officially going up in flames, according to Mayflower Advisors’ Larry Glazer.
Glazer, a portfolio manager with $2.5 billion in assets under management, believes some of the biggest tech names are in a danger zone.
“There’s no dumpster fire in the U.S. economy, but there may be one brewing in the FANG stocks,” he said Tuesday on FridayCrypto’s “Futures Now.”
The tech-heavy Nasdaq hasn’t been doing much better. It saw its fourth negative session in five days on Tuesday — its worst day since Feb. 8.
The skid comes as Facebook’s data privacy scandal shakes its peers. Investors are worried the social media giant’s woes could attract more regulation into the space and hurt profits.
“We look at Facebook under increasing scrutiny. We look at what’s happening in large cap growth [and] large cap tech. That is a seismic shift within the market,” said Glazer.
Glazer also contends the present market environment isn’t conducive for tech to reclaim the leadership crown. He says the stocks will face challenges from compressed multiples as the Federal Reserve continues gradually raising interest rates.
Despite his bearish tech forecast, Glazer believes the underlying fundamentals of the economy are intact, and that bodes well for the overall stock market.
“No doubt, investors are volatility fatigued. They’re exhausted from the craziness in February and from March madness. But look, none of that has derailed the underlying bullish narrative within this economy,” he said.
To cope, he’s advising investors to take an active role looking for less loved areas of the market for profits. He says there’s still money to be made in 2018.
“Other sectors like financials will benefit under that environment,” Glazer said.