From Vildana Hajric’s “Number of Nasdaq Stocks Down 50% or More Is Almost at a Record” posted Thursday:
A near-record number of tech stocks have plunged by some 50% in an echo of the dot-com crash.
Roughly four in every 10 companies on the Nasdaq Composite Index have seen their market values cut in half from their 52-week highs, while the majority of gauge members are mired in bear markets, according to Jason Goepfert, chief research officer at Sundial Capital Research.
“Whatever the fundamental and macro considerations, there is no doubt that investors have been selling first and trying to figure out the rest later,” Goepfert said in a note.
Another way of thinking about the tech wreck: At no other point since the bursting of the dot-com bubble have so many companies fallen like this while the index itself was so close to a peak.
“Valuations are at historical highs, companies are raising billions based on fairy dust, and the Fed is signaling a tightening cycle,” Goepfert said. “All of these are scaring investors that we’re on the cusp of a repeat of 1999-2000.”
My take: Apple has also fallen from its all-time high of $182.94, but by less than 6%.
Take flight to a safe haven: AAPL.
In theory, less mining equals fewer coins which should boost value, but since when did common sense have any place in crypto.
Exactly, PED. And as I write this comment Apple is up .85 lapping close to $173. Apple almost has been insulated in this tech sell-off because of its potential for growth in new products, its superb performance in continuing to drive revenues with strong margins and its huge cash reserves. Many investors see Apple during their concern with rising interest rates as a safe haven to remain invested in the markets getting outsized returns. I am confident that we soon be back at our ATH.
This tech wreck would remain confined to these meme stocks., AAPL, the safe haven, will do fine regardless of any potential turbulence.
We shall see.
One has to remember that tech has had a great run-up over 2021 and there’s every indication that “software is (still) eating the world” and tech will continue to be “where it’s at”.
However, I’m beginning to think that segments of overall business can “catch a virus” of FUD that plagues them for a term. We might be suffering this now. Not a hiccup, but a term of time with an attitude “illness”.
If I’m right, AAPL will probably stall in this environment and — like so many times before — we end up having some dead time pass until investors again realize that tech (including AAPL) is “where it’s at”.
A perplexing segment pendulum swing that, in a final analysis, might be long-term healthy as a tempering factor because we love to immediately believe our holdings in the market will rise in constant perpetuity when times are good, yet at the same moment, immediately forget that there are these requisite moments of pause and/or pullback.
A fact of the motion of this beast.
The usual word “adjustment” or “correction” conjures up an active intention.
I prefer “virus of attitude” as the underlying business supporting these prices — like the turning of a ship — doesn’t change as sporadically as attitudes can and do.
Emotion is a cousin of attitude. Tough to strip one away from the other.
It’s among the reasons I choose not to play in the small cap/mid-cap space. Nothing wrong there and there’s plenty of opportunity. I’m getting choosey as to which roller-coasters I want to ride.
“Emotion is a cousin of attitude.”
…and we’re back to Fear vs Greed….
I much prefer the Good Ship Apple.
“One has to remember that tech has had a great run-up over 2021…”
One also has to remember that AAPL’s run-up started very, very late in the year. I remain unconvinced that AAPL is going to suffer much of a selloff compared to companies like MSFT and GOOGL, which even now still retain a much higher gain over the last year than AAPL. And one also has to remember that we are coming into fy Q1 earnings, which could well hold major positive surprises from Apple.
Besides, any kind of real selloff of AAPL would only increase Apple’s bang per buck when it comes back into the market after its blackout period.
Life is good on the Good Ship Apple….
Harrr!
Long may it wave, mate an’ pass the rum.