Tech Might Be Good In Short Run Says Fleckenstein

Bill Fleckenstein gave his opinion about tech sector in his Contrarian Chronicles . He thinks that tech stocks might go up in the short term, on the news of strong earnings in this quarter and positive management estimates about the future. But Mr. Fleckenstein is not buying tech stocks because they carry a lot of business risk and they are also expensive in his opinion. He also doesn't want to short these stocks because they will probably make their third quarter estimates.

Bill Fleckenstein believes that U.S. economy is still moving towards stagflation, and if it is recognized, stagflation will have large impact on stocks, bonds and metals. The future scenario might be very similar to the events that occurred from 1960 to 1982, when Dow Jones Industrial traded in the range from 700 to 1000.

Gold will benefit from stagflation said Bill Fleckenstein and added that it has been a money for several thousand years and that it still is a money. He backed that up with an observation of Goldman Sachs' analyst that one major futures exchange will accept gold to be posted as initial margin across all products traded. 

Fleckenstein is long Gold and Gold bullion, and if you are interested in gold you might take a look at SPDR Gold Trust (ETF) (NYSE: GLD) or iShares COMEX Gold Trust ETF (NYSE: IAU).

SPDR Gold Trust (ETF) (GLD) gained 0.49% on Friday and closed at $98.37. It had a volume of $10.48M and its price range was between $97.74 and $98.86. iShares COMEX Gold Trust ETF (IAU) added 0.41% to close at $98.42.