The Nasdaq seems to be holding up better than the Dow - should we be investing in tech right now?
Answers
872 points
CUWu answered one month ago …
Well, it's true that the nasdaq performed slightly better than the Dow last week. The Dow was down almost 18% while the Nasdaq was down only 15%. However, it's important to look at the longer term performance of both indices. Year to date, they're both down by almost the exact same amount (Dow: down 36%, Nasaq; down 37%). So I don't think the tech sector is holding up any better than the Dow, or vice versa. We're a terrible bear market, plain and simple.
I'd be looking for strong consumer brands right now that have been through several bear markets before and held on. Those are the companies you'll want to have your money in when this market turns. Not "baby" tech companies.
Please note: I am a big technology investor and very bullish on the sector long-term. But for now, I'm sticking with tried and true companies.,
2641 points
MNSL answered one month ago …
CUWu is correct.
I like to add some more:
We should avoid following sectors now.
I think still following sectors are overvalued through out the world. Some sectors are overvalued by more than %50.
Technology sector including telecoms and electronics
Transport sector and Auto sector
Entertainment sector
Commodity sector
Property sector
Health sector
Retailers
There will be some fire sales most probably next year for the above sectors, it will hold up until fourth quarter of this year. In a fire sales you can buy as a long term investment.
If we do not know the market very well I think we should hand over our portfolios to people like Peter Lynch now.
This is the time to apply his investment strategy. There are plenty of cash cows and neglectors’ sectors with great potential world wide.
I think Next bull rung will begin with completely different sectors.
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