Wells Fargo’s Harvey: ‘we could see a double-digit sell-off in tech stocks’

The tech giants have recovered sharply in the stock market since their respective lows last year due to the COVID-19 crisis. With the pandemic related restrictions continuing to ease on the back of vaccine rollouts, investors are hungry for even broader profits in the upcoming months. Wells Fargo Securities’ Christopher Harvey, however, warns now is the time to take your money off the table.

Christopher Harvey’s comments on CNBC’s “Trading Nation”

Harvey says the rising rates are setting big techs for a major correction in the near future. On CNBC’s “Trading Nation”, he said:

Tech giants selling at a very high multiple is a warning sign

According to the Head of Equity Strategy, tech giants are likely to see a double-digit sell-off in the next three to twelve months. He acknowledged that these companies have high growth rates but highlighted them selling at a very high multiple as a warning sign. Some of these stocks have already started to decline, and the downside is likely to accelerate in the future, Harvey commented.

Wells Fargo’s Harvey prefers chemicals, capital goods, and financial companies over the tech stocks for at least the next twelve months.