Technology stocks could see a 15 percent correction in a few months, one fund manager told CNBC on Thursday, adding that he is selling shares of Apple, Alphabet, and Microsoft because they are "fully priced".
Patrick Armstrong, chief investment officer at Plurimi, said that the companies have reached their "full valuations".
"I feel sad, but I'm selling all my big cap tech companies. For years and years, I've been coming on talking about Apple's cheap, Alphabet's cheap, Microsoft's cheap, and they're above market multiples now. We have been reducing them into the rally for the past few weeks and they are getting fully priced in my opinion," Armstrong told CNBC.
The fund manager said that he will likely own the stocks that he sold again by the summer after a 10 to 15 percent correction takes place. The reason, Armstrong believes this will happen, is because, on a Schiller-adjusted price to earnings ratio, the S&P 500 is trading at 29.3 times. The mean for the S&P 500 is 16.7.