Tobias Levkovich Says Be Careful in the Tech Sector

The video discusses the growth of technology stocks and the factors influencing their performance. It covers real earnings growth, capital spending trends, and the importance of differentiating between tech sectors. The video also highlights concerns in the semiconductor industry, particularly regarding NAND pricing and capital expansion. Additionally, it examines the impact of bond yields and inflation on stock valuation and future growth potential.

What is the expected percentage increase in capital spending for technology companies?

• 10-12%

• 15-16%

• 17-18%

• 20-22%

Which sector should investors be cautious about according to the valuation criteria?

• Energy

• Tech hardware and equipment

• Consumer goods

• Healthcare

What concern do analysts have regarding the semiconductor industry?

• Regulatory changes

• Increased competition

• NAND pricing rolling over

• Decreasing demand

Which side of the tech sector is considered stronger due to inherent growth?

• Software

• Hardware

• Manufacturing

• Service

What economic factor could negatively impact the present value of future earnings in tech?

• Decreasing wages

• Decreasing inflation

• Stable interest rates

• Rising bond yields