Talaria Co-CIO Chad Padowitz joined other fund managers with our investment team’s thoughts on our outlook for 2022. Below his responses on crowded trades to avoid….
Chad Padowitz: We think US tech is particularly crowded and quite a vulnerable space because it’s trading at very high valuations. Pricing in continued high growth alongside very low-interest rates, which we think is a very challenged and difficult pathway to navigate into the next year.
Livewire: When you say US tech, do you mean Apple, Microsoft, those bigger names, or are you talking about small to mid-cap stocks?
Padowitz: Predominantly I’m talking about the larger, bigger names that dominate the index and dominate the NASDAQ, and those would be the Amazons, Apples, Microsofts and so on. Certainly, that risk and challenge do permeate all the way down though.
The Livewire Outlook series runs throughout January, and you can watch the video on Livewire.
