Market Overview

Tech Stocks Are Still The 'Best Place To Be'

Tech Stocks Are Still The 'Best Place To Be'

For the most part, investors who owned tech stocks over the past few years have seen impressive returns. So, the question heading into the final months of 2017 is whether tech companies belong to the same hot category of 2016.

The answer is quite simple, Max Wolff, chief economist at Disruptive Technology Advisers explained during a recent CNBC "Trading Nation" segment. After a strong run, tech stocks are not only expensive on a dollar amount basis, but expensive relative to normal times and expensive relative to their own recent and longer-term past. But none of this particularly matters since tech stocks are still growing and boast "great margins."

With that said tech stocks are still the "best place to be," although a more accurate description would be the "expensive but best place to be," he added.

Tech giants like Microsoft Corporation (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), Facebook Inc (NASDAQ: FB) and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) are attractive because they among the most "dominant" companies.

"It's American/global dominance area, and there aren't that many of those," he said. "And it tends to be a place where we keep seeing good revenue numbers and great margin numbers."

However, investors should "keep your eye on where the exit is in all of these risk assets," but at the end of the day, tech stocks are showing no signs of weakness.

Related Links:

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Posted-In: CNBC Max Wolff tech stocks TechnologyTop Stories Tech Media Trading Ideas Best of Benzinga


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