These rises continued until the end of last year, despite food and gas prices rising at a pace not seen in years with wages and the coronavirus pandemic prevailing. Speculators have also turned to a variety of investments, including cryptocurrencies, real estate, and even trading cards and other collectibles. This surprised many who saw signs that investors were crazy about it.
As a result, the decline in prices to remove some of the excess has been postponed for a long time, many market watchers said.
Lindsey Bell, Chief Money and Market Strategist at Ally Invest, said: “This sold-out in the last few weeks feels uncomfortable, but the good news is that the sooner we sell out or fix, as we see today, the more likely we are to make up for it. We’ve lost ground by the end of the year. rice field.”
That doesn’t mean that this year won’t be a bumpy year for equity investors. Investor-backed companies such as Peloton and Netflix have returned to normal momentum with new clients, especially for large tech stocks, which could slow corporate profit growth. Have lost.
But some investors are worried that even the largest tech companies may be declining. This is exacerbated by rising interest rates, forcing much of the profits to go to debt repayments and making it difficult for investors to meet their high expectations of growth. ..
Technology stocks, which were at the forefront of market declines this year, also plummeted on Monday. The technology-intensive Nasdaq Composite fell about 5% and then rose about 0.6% until the end of the day. Nasdaq has already crossed the correction threshold last week and is now down 13.7% from its highest.
MicrosoftThe next big tech company will report profits on Tuesday, announcing on Tuesday that revenues for the last three months of last year were up 12% compared to a year ago, a significant slowdown from the previous quarter. The most profitable ever.
In a broader sense, revenue from tech companies is expected to increase by nearly 15% in the fourth quarter. According to market research firm FactSet, this is down from nearly 28% growth for the full year.
Ryan Jacob, Portfolio Manager for the Jacob Internet Fund, said: “It’s a difficult environment for large cap technology.”
Janna Smiarek, Jeff Somer When Stephen Gandell Report that contributed.
