Last week, Fred Hickey announced on Twitter that he had started shorting big-cap tech stocks for the first time in a long time.
Hickey is the editor of widely circulated High-Tech Strategist newsletter. He’s also a regular on Barron’s exclusive Roundtable.
In his latest issue, which was published yesterday, Hickey adds colour to his call.
“I am looking at taking short positions heading into these April earnings reports and have already established two small ones in IBM and Google,” he writes.
“As one would expect, International Business Machines has a lot of exposure to the weaker international markets,” he adds. “50-seven per cent of their sales in Q4 were from overseas, and that didn’t include Canada or Mexico. There’s big exposure to Europe and Japan.”
“Google’s stock will dive on disappointing quarterly reports,” he says. “Take a look at their roller-coaster-like stock chart over the past few years. The scary dips come around quarterly reports.”
Hickey is considering these positions in the context of his broader macro thesis, which is based on his concerns over expanding money supply.
“I’m being very careful to limit my exposure in this money-printing environment.”