A chief strategist says watch this signal to know when to get out of highflying tech stocks
News Source : Business Insider
News Summary
- Chris Konstantinos of RiverFront Investment Group said he remains overweight on tech stocks for the time being.
- He said the warning signal he's watching is cash flow.
- In other words, how much money is coming in versus how much the company actually keeps.
- Today, reported earnings and free cash flow levels are keeping pace with each other, while that stopped being the case around 2000, at the top of the dot-com bubble."Until that relationship inverts, we believe the fundamentals support staying invested in mega-cap, high cash flow tech shares," he said.
Its not time to leave the AIfueled tech party just yet,one chief investment strategist says.
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