Wells Fargo Analyst: Tech Stocks Run-Up Nearing End
Wells Fargo’s head of equity strategy Chris Harvey warned this week that the bull run of tech stocks, led by FANG (Facebook, Amazon, Netflix, Google), may be nearing its end, and a turn for the sector may cause other markets to follow.
Harvey says that the overall positivity in the market is a cause for concern, but it may not yet be time to jump ship. However, they are already looking for signs and getting ready, seeing that their clients are starting to capitulate and value players that are just buying into the space, which are signs that things are getting late into the cycle.
Harvey added that since the tech sector makes up more than 25% of the S&P 500, a stumble would definitely affect the whole equity sector.