Fund manager Bill Fleckenstein of Fleckenstein Capital made his name – and a lot of money – shorting tech stocks at the height of the Tech Bubble. Now he says there are specific tech companies he's planning on shorting.
"What people fail to realize on some of these companies is they have a lot of international exposure," says Fleckenstein in an interview with Talking Numbers. "The world economy is weak and probably weakening at the margins…. And, the dollar is very strong."
For the companies in the S&P 500 that have reported so far, tech companies seem to be in trouble. According to statistics compiled by Thomson Reuters I/B/E/S, tech company revenues may be growing nearly 2% for the quarter but earnings are falling almost 4%. Compare that to other sectors like financials which have revenues growing almost 6% and earnings growing over 21%.
"I think you've got a chance to see this big group of companies [tech] stumble and I think we can see a lot of multinationals have problems," says Fleckenstein. "For the first time in a long, long time, I'm going to short a handful of these names."
So, what companies does Fleckenstein say he's shorting and why? Watch the video above to find out.
Be sure to check out Part II of our interview with Fleckenstein tomorrow, he makes a shocking claim about the Federal Reserve Bank.