[Covariance]

I removed all exposure to cashflow negative tech over a year ago. Shorting is something I considered but chose not to. It’s been in a bear market for these companies for some time and while it can always going lower I think the easy money has already been made.

 

[Covariance]

I initiated a small position in big tech AMZN and MSFT recently in case the bottom was in for large tech. If we see further declines or sideways movement in the first half of 23 I may add or buy Apple. Not sure if there are many here that implement a shorting strategy. Perhaps there are some but I am not aware of any that do so or share that they do. At best you may get some input on where people think tech is headed. I am of the mindset that tech in general will be in a period of consolidation for the next while. Innovation will continue at a rapid pace but equities may not see the same valuation until the next bull market is well underway.

I sell short occasionally (not here as expressed separately). More typically if I was looking to capitalize on a negative view I would use derivatives since I can better shape my risk/return profile.

WRT tech I am long enterprise software and have been for quite a long time. I like the free cashflow, recurring revenue and moat. MSFT falls within this, and I acquired it when I understood their new strategy (new CEO) back in 2015.