On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article. But certain individual stocks will rise much, much more than that.įind out which stocks could lead this epic 2023 comeback. The Nasdaq may rise 100% over the next two years. You need to buy the high-flying stocks that will lead this rally.īack in 2020 – the last time tech stocks staged a huge comeback – more than a dozen rose over 1,000% in a year. Tech stocks have regained their mojo, and the party’s just getting started.īut if you want to maximize your returns in this comeback, you can’t just settle on buying the Invesco QQQ ETF ( QQQ ) – an ETF that tracks the Nasdaq. Tech stocks are about to stage an epic comeback. Historically speaking, whenever the Fed pauses a rate-hike cycle as inflation is falling – exactly the situation we will have in 2023 – tech stocks always outperform:Įither this is the first time in history that the combination of steady interest rates and falling inflation equals tech stock underperformance, or… This inflection point marks the beginning of the massive tech stock comeback. Net-net, both inflation and interest rates rose throughout 2022. So, the most likely path forward is a 25-basis-point rate-hike next week, and then a pause. And it also knows that inflation is falling rapidly. The Fed doesn’t want to crush the economy. And bigger breaks could crush the economy. And major Wall Street banks saved First Republic.īut the Fed knows that if it keeps pushing the envelope – and stays the course with rate-hike after rate-hike – the breaks will get bigger. The Swiss government rescued Credit Suisse. government essentially rescued SVB and Signature. To be sure, those failures didn’t break the back of the U.S. Credit Suisse ( CS ) and First Republic ( FRC ) almost failed. Silicon Valley Bank and Signature Bank failed. The financial sector has started to break over the past week because of the Fed’s rapid increase in interest rates. Meanwhile, interest rates will likely stop rising soon. Looking at real-time Truflation data, which measures millions of data points and contrasts outdated government metrics, it looks like inflation is tracking toward 4% in March. It has since dropped all the way to 6% in February. Inflation – as measured by the Consumer Price Index – peaked in mid-2022 at 9.1%. In 2022, tech stocks were dragged down by rising inflation and interest rate hikes. Why? Inflation and rate hikes – or more specifically, the lack of those two things. But more than that, tech stocks are about to catch fire and stage one of their biggest comebacks ever. Between 1995 and its peak in March 2000, investments in the NASDAQ composite stock market index. The period coincided with massive growth in Internet adoption, a proliferation of available venture capital, and the rapid growth of valuations in new dot-com startups. Tech stocks clearly have some newfound momentum.Ĭan it last? Yes. The dot-com bubble (or dot-com boom) was a stock market bubble in the late 1990s. It has retaken its 50-day, its 100-day, and its 200-day moving averages. It’s up 12% so far in 2023, marking one of its best starts to a year ever. The tech-heavy Nasdaq soared 2.5% on Thursday. Tech stocks are starting to get their “mojo” back.
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