Lux Capital's Josh Wolfe on why the buy-the-dip mantra will no longer work

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Lux Capital invests in emerging science and technology companies, making long-term bets on contrarians in the space. Over two decades, the firm has grown to manage $4 billion in assets. 

Josh Wolfe is the futurist fund manager leading the charge at Lux Capital. He has an acute read on scientific innovation and technological breakthroughs to which investors should be paying close attention. Wolfe sat down with CNBC's Delivering Alpha newsletter to discuss his investing outlook, along with where he sees the most promising opportunities right now.

(The below has been edited for length and clarity. See above for full video.)

Leslie Picker: I just wanted to start first with your broader read on the markets right now. Do you think that especially in some of the key pockets of tech, and growth, is this just some air coming out of the tires a bit or a full revaluation of the sector?

Josh Wolfe: I think in some sectors, it's a mix. I think you've got a flat tire in some sectors. We're looking at probably, in my estimation, a greater than 60% chance that we are in March of 2000 for a broad segment of the market that has been very overvalued. And that means that we're probably going to, for an 18 month period till, say October 2001, where you saw about an 80% decline in some of the most popular names. And that 80% decline happened by 50 basis points, 1% drops over a long period of time, which was a measure of people's belief, clinging, that this was going to continue. You've had five, six years where buy the dip has been the mantra and it has worked. And I think it's no longer going to work and you're going to see revaluation across specifically some segments of the