Forget Big Tech — stocks like these have the biggest upside potential in a volatile market, investor says

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Investors may soon face a major correction in tech after last week's market volatility, says The Bahnsen Group's founder, who shares where to invest instead.

Investors may soon face a major correction in tech after last week's market volatility, according to David Bahnsen, founder of The Bahnsen Group. "A big tech stock reckoning and correction is inevitable," the chief investment officer told CNBC's " Street Signs Asia " on Tuesday. Calling the euphoria around Big Tech stocks this year "absurd," he said that such excessive investor sentiment and "overdone" momentum "always ends the same.

"There are always other spots of the market that might be doing very well but it's what we believe in as an area where you can protect yourself from the downside by having higher quality," said Bahnsen. "Avoid some of the value traps, avoid some of the speculation and euphoria that can get ahead of itself and focus on cash flow, and the free cash flow that gets returned to shareholders via growing dividends.

 

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