Hedge fund manager and former White House Communications Director Anthony Scaramucci joined Cheddar’s News Wrap Tuesday evening with a warning about the current state of the S&P 500 index.

“It doesn’t feel right to me,” said Scaramucci, the founder of SkyBridge Capital and the annual SALT Conference. “I’m worried about [the tech sector],” he said. “You’ve got a high concentration now in the S&P 500 in five or six names, and every time that that’s happened — and I’ve been doing this for 32 years — every time that that's happened, it ends in tears.”

The S&P 500 rose to a new record close Tuesday, officially erasing all of its coronavirus losses in the trading session, climbing 0.2 percent to 3,389.78. The S&P 500 also reached a new intraday all-time high.

But that could spell concern, says Scaramucci. “You get what’s called multiple compression. It happened to the Nifty 50 in the 1970s. Everybody said just buy Coca-Cola, Kimberly-Clark, Alcoa, these great companies and just hold them… [eventually] you lost value in those names. I'm worried about that.”

When asked about Apple and its impending $2 trillion market cap, however, Scaramucci offered his praises for the tech giant that has managed to sidestep the worst of the U.S.-China trade war under the leadership of Tim Cook. “They’ve got a lot of cash on the balance sheet. Tim Cook is doing an amazing job running that company — also known as Tim Apple,” Scaramucci joked, in a light jab at his former boss.

“Apple’s a little studier [than Amazon],” Scaramucci continued. “I like Apple long-term, but I am worried about the concentration of valuation.”

In the wide-ranging sitdown Tuesday, Scaramucci also touched on the Democratic National Convention and what a Biden-Harris White House would mean for investors in the major market indices. “Historically, the stock market’s done better with Democrats than Republicans... Any demise of the economy or demise of the stock market is, frankly, greatly exaggerated,” he said in response to claims by President Donald Trump that the markets would come "crashing down" were he to lose. “The Fed is not changing policies with a new presidential administration.”

Scaramucci also sounded off about the Robinhood trading app, which now touts more than 13 million users and wrapped up a Series F round of funding. “I do think it's, by and large, a good thing anytime that you can broaden investor capital and broaden the enthusiasm for being in the stock market," he said in response to massive millennial and first-time investor interest in the no-fee trading app. Scaramucci compared Robinhood to the origins of Charles Schwab. “I like it, I wish those guys well.”

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