The recent tech crash actually signals a rare window for investors.
Transcript:
ROSS MAYFIELD: Yeah so big tech has obviously been hit pretty hard this year. Interestingly I mean big tech mag seven the technology sector writ large has been a relative underperformer for almost a year now really since the summer of 24. So this isn’t necessarily new. Some of the drivers and catalysts are fairly new, again, in terms of Deep Seek or in terms of the export controls and trade war with China. So again, I think near term, if you’re a tactical investor, the technicals for big tech, the issues that they’ve been facing, the lack of relative leadership is a concern over the next three to six to even 12 months. Longer term, the structural drivers of those stocks, I demand AI adoption and some of the other things in their wheelhouse remain pretty sound. And in some ways they’re actually accelerating. So I think it’s a good place to be. But it’s one of those trades where near term volatility kind of has to be stomached for the long term reward. We’ve seen big drawdowns in big tech before as recently as 2022. So nothing new for these kind of higher growth names.
I think the recent tech still presents a good buying opportunity. If you can take the longer term view again, the technicals are pretty damaged in the near term. There’s a lot of headwinds for some of these semi stocks. And that’s not even factoring in the potential for just an economic downturn that tends to hit cyclical sectors harder. But long term the drivers of a structural trade are in place. Adoption is growing. So I think that for investors who can look out that far and stomach the big volatility and big swings in the meantime, this is an attractive buying opportunity for sure.
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