A profit squeeze is expected in the tech sector, according to Robert Almeida, chief global investment strategist at MFS Investment Management. This manager, who also oversees the MFS Diversified Income fund (DIFIX), is favoring unglamorous stocks over flagship tech names. He advises investors to look beyond Federal Reserve decisions and instead focus on companies’ return on invested capital. In an interview with MarketWatch, Almeida emphasized evaluating the multiple paid for this return on capital over a 6 to 18 month horizon.
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