According to Paul Meeks, investor, avoid technologies before the season of results

The investor Paul Meeks avoids the group that made him famous.

Meeks, who is known to have managed the world's largest technology fund for Merrill Lynch during the dot-com bubble boom and its collapse, questions valuations as a result of the dramatic fall in recent lows.

"I am neutral or downright bearish on the sector I have been covering for decades," he told Trading Nation on Friday.

The Technology Select SPDR fund climbed 39% from the December low. In addition, the SPDR fund in the Communication Service Select sector, which includes social media and internet giants such as Facebook and Alphabet, has grown 29% since then. And, he just had his best week in three months.

"We had an absolute bloodbath in the tech names in the fourth quarter of last year, we had a rebound and then in May 2019 we did not have a bear market technology but a technological correction, "said Meeks. "Now we came back and negotiated at pretty high valuations, especially for the semiconductor sector in the technology sector."

According to Meeks, it is better to own technology or be a net seller of the sector – especially because of the trade war between the United States and China. He warns the market prematurely by incorporating a resolution.

"This tariff issue is, in my opinion, very important for the semiconductor industry, which is once again a leader in the technology sector," he added.

Meeks worries that investors will be hit by the impact when the second quarter earnings season begins in less than three weeks. He estimates that this could result in an additional sale of 8 to 10% due to the broad exposure of the technology to the region.

"We will have some opportunities when these companies publish their June quarter results, which will give us a lot of data to absorb," he said.

Meeks is still invested in many of the most important and popular technology names. But he makes it clear that he is not planning to relocate before the results season, at the earliest.

"I prefer to buy those stocks when the valuation pendulum moves," said Meeks.