If you look at the graphs you will see that the tech sector has suffered more than any other main stock class over the last few months. We know it is simply a case of investors becoming more risk averse which has impacted the premium ratings tech stocks have enjoyed of late. The main question - is it time to start buying back into tech stocks?
Thought the Sector would have bounced on the interest rate news :- https://finviz.com/fut_chart.ashx?t=NQ&cot=209741,209742&p=d1&rev=636791083939747390 Maybe we should be looking for a delayed reaction?
The graph:- If this is the end of the "correction" then it is probably time to start looking at the likes of Google and even Tesla for those with an appetite for risk
I am holding off for the moment as I dont believe we are quite over the worst yet. Only a few weeks ago the Fed had pencilled in an array of interest rate rises but now they suggest interest rates are in a "neutral" position. What has changed?
To my mind, it is better to search for Small Caps with good news, rather than just to buy "blue chips". Large companies are likely to go with the market in case of the next coorection, while the small companies with the good news could possibly attract investors looking for interesting investment opportunities on this chaotic market.
Personally I would be tempted to reduce tech holdings into market strength. This bounce has been too much like plain sailing lol
It would be interesting to search for next year "favorites". Blockchain stocks were popular during last winter, cannabis stocks were on the top on previous earnings season...which would be the next?
If I had some free cash I would be tempted increase my tech sector holdings by selling cash-covered puts with an eye toward acquiring my choices at a lower cost. Either outcome--income or ownership--works. But as "free cash" is not in my wheelhouse at the moment, I haven't done the research. I am standing pat with $CSCO, $INTC, $T and $VZ while reinvesting dividends.
