Coronavirus Roundtable - Tech's Antifragility (Video)

Summary

• We continue our Coronavirus Roundtable series with a video interview with Andres Cardenal of The Data-Driven Investor on the tech sector.
• He makes the case for why tech will continue its outperformance through this cycle and into the next bull market.
• He also shares two of his ideas, Docusign and Twilio, which he thinks will hold up well in a downturn.
• We also talk about how he raised cash in January, and how he's positioning in the market for the months ahead.

by Daniel Shvartsman

We recently published a roundtable discussion on the tech sector, and one of the themes from it was that tech's relative outperformance in both bull markets and the bear market so far is deserved. There's a natural resistance built into the sector to working from home and to keeping the economy - or what's still open of it - running. To use Nassim Nicholas Taleb's term, tech appears to be antifragile.

We continue our video interview series with Andres Cardenal, CFA of The Data-Driven Investor. He was one of those who argued tech will maintain its premium valuation, even as I asked him about the cyclicality of online advertising and consumer spending. He also shared a couple stocks - Docusign (NASDAQ:DOCU) and Twilio (NYSE:TWLO) - that he thinks will stay strong in the months and years ahead.

Analyst’s Disclosure:I am/we are long GOOG. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Daniel Shvartsman is long GOOG. Andres Cardenal is long DOCU, TWLO, TTD, AMZN, GOOGL, FB and AAPL. Nothing on this video should be taken as investment advice. We will publish a transcript of the conversation in the coming days.