Markets Sell Short as Return Increases Hit Technology Stocks – What’s Next
Markets sold out on Tuesday after The sharp rise in revenue has weakened technology stocks.
Here’s what five experts are saying about stocks right now.
Tom Lee, head of research at Fundstrat, said the noise from Washington, DC, which had contributed to investor nerves, wasn’t a dealbreaker for the markets.
“I know investors don’t like it when there’s a turmoil in politics in Washington, but anyone who just needs to look back at the last 30, 50, 100 years and then realize when Washington is playing a tricky role, it’s not a time to panic about stocks. … No I kind of want to say it’s a guarantee but it’s always a great buying opportunity.So, I think there’s been a lot of damage to growth and tech trading and Standard & Poor’s technical but to me, this just seems like a precursor to holding together before the big move up.”
Stephen Weiss, founder of Short Hills Capital Partners, is at a loss to find many positives in this market at the moment.
“My view on the market has been pretty consistent, as I don’t see the positive triggers going forward. I see a lot of negative triggers, but I feel very pressured to think of anything positive. Let me touch on a few of them — first of all, Retail as we can see from inflows has stopped buying the dips the same way it has been in the last year. That’s #1. #2, the supply chain problems have gotten worse, the labor problems have gotten worse. And when you see that liquidation through companies, a number of them have already gotten Low earnings…because you’re going through a post-pandemic phase, and you’re going to see margin pressure in almost all sectors, maybe not energy at this point, but through most other sectors, as well as yield that keeps going up.”
Developments seen as negative are actually positive for markets, said Chris Grisanti, chief equity strategist at MAI Capital Management.
“I’m going to be a stock buyer here and I think what we’re doing is the end of the delta slowdown caused by a variable, and I think that’s the end because we’re starting to see some things that people are taking as negatives – for example, oil is going up, interest rates are going up, but that’s not wrong It’s a feature of a growing economy. Sure, does anyone like higher rates? Not necessarily, but if it’s a byproduct of a growing economy and this economy continues to grow next year, I think we’ll be fine and I’ll keep buying stocks.”
Jim Brayer, founder and CEO of Brayer Capital, is an adherent of technology.
“I don’t do a lot of selling [Tuesday], but for the past two years when stocks of big tech companies have sold out in a big way, I’ve been a buyer. The reason is that they are also pioneers in all of the next generation technologies, be it artificial intelligence, AR/VR, quantum communications and computing. the alphabetAnd MicrosoftAnd An appleThese are the best companies in the world. And so I still believe that for the next three to five years, they will continue to excel.”
Dan Niles, founder and portfolio manager at Satori Fund, sees this downturn as a reset of expectations.
“Don’t forget that a lot of tech companies have benefited from globalization in the last year pandemic Stream more movies, buy more stuff through e-commerce, etc., and so on, there was this massive uptake during that time period. And now what you see is that streaming companies are missing out on expectations, and e-commerce companies are missing out on expectations.”