What's Next for Tech?

Cameron Dawson discusses the current state of the tech sector, highlighting its high valuation and potential for a price correction. Despite economic uncertainties, tech remains resilient with strong earnings. The discussion covers tech's performance in recession scenarios, the impact of a potential soft landing, and the importance of valuation discipline. The conversation also touches on treasury positioning and yield trends, providing insights into market dynamics and investment strategies.

What is the current valuation status of the tech sector compared to the S&P 500?

• It is trading at a discount.

• It is trading at a premium.

• It is trading at the same level.

• It is undervalued.

How did the tech sector perform during the earnings growth correction in 2020?

• It experienced a decline in earnings.

• It had no change in earnings.

• It maintained stable earnings.

• It grew its earnings.

What might happen to tech investments if the Fed achieves a soft landing?

• Tech investments will become less attractive.

• Tech investments will be unaffected.

• Cyclical parts of the market may recover first.

• Tech will be the only sector to recover.

What is the current state of the labor market according to the transcript?

• It is moderately tight.

• It is very tight.

• It is declining.

• It is very loose.

What is a key difference between a soft recession and a full recession?

• A soft recession is longer.

• A full recession is shorter.

• A full recession involves a debt crisis.

• A soft recession involves a debt crisis.

What does a continued rise in yields indicate about the likelihood of a recession?

• A recession is imminent.

• A recession is unlikely.

• Yields have no impact on recession likelihood.

• A recession is already happening.

What is the current trend in hedge fund positioning on treasuries?

• They are net long on treasuries.

• They are net short on treasuries.

• They have no position on treasuries.

• They are neutral on treasuries.