Joshua K. Spencer has managed his T. Rowe Price Global Technology Fund to become the best-performing mutual fund in the past five years with big bets on Amazon and Tesla is now selling some big winners… and it’s sending FANTASY stocks lower…
FANG stocks are rolling over…
And FANTASIA (Facebook, Amazon, Netflix, Tesla, Alphabet, SalesForce, Intel, and Apple) stocks are falling back from their 50% retracement…
But as MarketWatch notes, the fund manager is careful to hedge, pointing out that the decision to sell a company’s shares doesn’t mean Spencer has soured on the business or strategy. In fact, he expressed great confidence in Tesla’s long-term success.
“When sentiment lifts, that is when we usually take money off the table. That is hard to do. It feels bad to sell when stocks do well,” Spencer said.
“I have learned from experience that it is difficult to predict what will drive a stock down, but when things are elevated, it is best to be cautious,” Spencer said.
Over the past two months, he has been holding more cash than before as he reduces or eliminates positions in “more extreme winners.”
Additionally, Morgan Stanley sees more downside, but is also careful to hedge that eventually you buy the dip…
The sharp sell-off in Technology stocks on June 9th saw some follow through last week with a rotation toward some of the most unfavored areas of the market, including Energy.
We think this could continue for a few more days/weeks but will not lead to a serious decline in Technology stocks or the broader market given a strong earnings backdrop, low interest rates and loose financial conditions.
