The Current Situation is much more dangerous than during the Dotcom Bubble -Hickey/The Market
"Wall Street darlings like Apple, Google and Amazon have dominated this bull market. But today, the so-called FAANG stocks have lost some of their attraction and are lagging the overall market since last year. 'Without participation from the FAANGs it will be difficult for the stock market to rip to new highs', says Fred Hickey.
According to the renowned contrarian investor, each of the tech behemoths is struggling with its own fundamental problems, with Apple being the weakest of the group. Hickey also sees a huge gap between fundamentals and valuations in the semiconductor sector...Yet, in contrast to previous cycles, the editor of the 'The High-Tech Strategist' hasn't placed large bets on a crash. That's because he fears that central banks could step in once again and bloat the stock market with new rounds of quantitative easing. 'We’re near a recession if not already in one. Many parts of the world are in trouble. China's growth is at a multi-decade low and its economy might be in a recession. As a result, we see terrible export numbers coming out of Korea and Taiwan. Around the globe, trade, manufacturing and capital spending are contracting. In the tech world, all the end markets are very poor: auto and smartphone sales are declining, PC sales are weak, and semiconductors are in the worst downturn in a decade.'....'And, if you look at the valuations in the stock market as a whole, you could see a 40 to 50 per cent decline there.'....'I have quite a bit of cash, more than I had in a long while...But my biggest position is in precious metals.'....'People are very underinvested in gold and silver. In the past, when people were heavily invested in gold, they had 5 to 8 per cent of their portfolio in gold. Today, we're at a fraction of one per cent...So the smart money has jumped in, the masses of institutions have not yet. We're still in the early stages of this bull market.'"