thank god i’m not the only one feeling this!!
Exactly… compare that scenario with today’s “overpriced” scenario is a very wrong thing.
The tech sector is not shielded against crises of course, but the big players in 2020 are among the most solid companies in the planet.
Sure there are shitty ones like Netflix that survives on emitting bonds, and probably more few of them… but even IBM that has losses in revenue in the past few years, is much more solid that many players on other sectors.
Plus, if analysts says what they are talking about, they will be millionaires, not analysts.
Sorry if it will sound rude… but do you really know what you’re talking about?
Should we do your DD to show you how many companies continue to pay their dividends and has recovered of any economic crises in the last 50 years?
I know the the whole apocalyptic scenario that some media are painting sounds scary, but that’s exactly the times where we as investors (not speculators) need to learn more about the market, look the historic data to see what happed in previous crises… why… how was the recovery… who survived, why… how…
Plus, by no chances you will find any paper showing that holding cash was the best strategy in any crises… if you want sell off when you do thing that is a start of something to wait just a bit and invest again in lower prices entries that you has before… that’s also works… besides that… you will just lose the timing as 99,999% of people always do.
cheers.
Great response…I’m not talking about recoveries am I, I’m talking about a correlation between the market and economy. Although they aren’t always interconnected they do have implications for each other.
Where do I mention holding cash?
Do you know what you’re reading?
Do you not understand if the stock market drops people have less disposable income this then has an impact on the market, this a full circle. It also affects the rate of unemployment as people who would retire don’t and so numbers of unemployment increase.
I suspect on the holding cash front that’s a reference to my own actions that I noted as I pulled back to cash. It ignores however that I noted my risk profile had changed in light of a change in my circumstances also.
Tech is not one homogeneous stock or set of stocks. There is a lot of difference between say Microsoft and Zoom (easy examples that most should know).
My personal view is that one is overvalued and the other isn’t (and has continuing areas of massive growth that they already monetise). Part of the increase in tech stocks is because the services are ever more useful/crucial and covid has emphasised that.
Not all tech stocks are equal…
That’s a solid point… crashes will happen for sure… but betting against the tech sector is betting against the future.
In few decades maybe nobody will use banks anymore, JPM and BA may completely die… you can think on multiple sectors that might die in few decades… evolution on science, biotechnology, everything connected at home, on cars, etc… and you know what will make this possible?
Technology.
If I have to hold one single stock/ETF for the rest of my life… it will be Nasdaq 100 for sure.