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Matt Lloyd, Advisors Asset Management chief investment strategist, weighs in on the tech sector ahead of Apple’s earnings reports.
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Course has been down over the last two weeks so is it -- buying temperature near she'd -- set.
-- -- Matt -- chief investment strategist at advisors asset management.
Out -- Colorado thanks for being with -- -- you know we've gotten some.
Well bad guidance from IBM.
Quell com IBM in -- Intel post slowest sales growth in more than two years.
But don't telling them back to the abacus in the -- anytime soon.
I don't think so I think have actually been due for an upgrade cycle for some time.
I think we look at apple it's it's kind of been the Bellwether of all the technology.
And understandably so especially since last 45 years of really had -- change in consumption and they've been at the forefront of it.
But when you look it Apple's actual earnings it's not so much what they release it's the whispered numbers were flashing back to the 1990s again with a whispered numbers are so important anymore but I would say that.
With the whisper numbers be about ten to 15% above what the expectations are in.
As previous guess was talking about the wide variance of expectations are the more important thing and the institutional money is looking at the guidance going the next quarter.
So I would say that if you see technology peripheral selloff because of apple I would say that's a great buying opportunity for the next few years.
I think you're saying that tech in general which is suffering -- from Apple's numbers for -- and -- -- -- poorly but let's talk about and where.
Because it clearly can't just buy the whole tech sector although it's -- invested.
Ten years ago in my daughter was born in the XOK which is the text fighter I'm up 41%.
Today it's different I suppose so what parts of the tech sector are you putting your money and I think you pretty good and and -- Overall bellwethers Microsoft Oracle Cisco.
I think Texas Instruments you saw some decent numbers from them and some expectations.
Even though there is a little bit of a negative impact from some of Qualcomm and so forth.
I do think though you'd wanna complement those positions with like an XLK.
Because it gives you broad based coverage probably the only sector that I'm a little bit more neutral on would be probably the global Telecom sector.
But I think at this point I think there's going to be a high tide lifts all boats and technology due to the upgrade.
Black that we had an upgraded for the last ten years in fact we cannibalize an upgrade cycle with the Y two K.
I think we're long overdue for that even though may be marginal increases on this upgrade cycle.
It's gonna build upon itself and I think that's -- look for the next few years.
You know but what about.
Sectors like cloud computing and networking things like that you know even look at the out well my got everybody has Angry Birds on their phone these days I think it's you know 700 million people -- downloaded it right now so.
Meeting that's rising to put my money in Angry Birds.
Well I hit a I think there are a lot of Angry Birds out -- -- -- is and a lot of Angry Birds before the game even came out.
I think when you look at it though I think that those of the peripherals side of -- in.
As you start the beginning of the cycle what you Tennessee is a -- kind of set the stage and Daniel become more Darwin is to I think we're about a year away from really be in -- in -- taken.
Really selecting who's going to be really flourish and not in the next cycle.
I mean again -- -- recovery is still growing even at a stealthy level.
It's surprising a lot of people.
That's what you look at the consumers buying in the consumption.
I would say that -- give -- good clue about where the next winners will be but I think right now broad based its bellwethers technology would be a great place to start.
-- Microsoft could surprise I suppose anything can happen that thank you so much.
Thank you guys.
