When Tech Stocks Go Down, So Does the Entire Stock Market - 3
By Saghir A. Aslam
Rawalpindi, Pakistan
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfil their religious and moral obligations towards charitable activities)
A great deal of damage has already been done, at Meta and other tech companies. Hiring has slowed, and many companies, including Lyft, Stripe, Redfin, Snap and Twitter , under its new owner, Elon Musk, have been laying off employees.
This year through Friday, Meta stock declined 66 percent. Other tech companies with long histories of resilience and solid earnings have done better, but none have done well.
The S&P 500 has fallen roughly 17 percent this year, thanks, in large part, to tech stocks. Here is a sampling, from FactSet:
- Apple -15.8 percent.
- Microsoft -26.6 percent.
- Alphabet -33.5 percent.
- Tesla -44.4 percent.
- Netflix, -51.8 percent.
- Amazon -39.5 percent
You have just seen in this article 6 very popular companies known to everyone have had a great decrease in value from 18% lowest one for Apple to the highest ones in Netflix 55% most people mainly are 1,2 by these unpairs that are going down from my decades of experience I am monitoring and watching not only these six companies but several others. I will continue to watch them. I will be buying anyone of these companies or maybe several of these companies at an appropriate time once I am sure in my mind that this is a proper time to buy; you should do same after your homework and research.
How to Proceed
If you have an appetite for risk and high regard for these companies, it may be tempting to plunge into these stocks now, simply because they’ve come down so far. That may be a good idea, if you have a strong long-term conviction and have just been waiting for a better price. I have friends who have owned Apple stock on and off for decades, buying and selling when the price has seemed right.
If I were buying specific stocks, I would take a value approach — buying solid businesses that generate ample cash flow, as Warren Buffett has recommended, with the intention of owning compelling businesses for a lifetime.
I’m strictly a fund investor , however, and use mainly broad low-cost index funds, which I’m still buying steadily, with the idea of holding them for a decade or more. They include tech stocks and a wide range of others, including fossil-fuel stocks like Exxon and Chevron , and health care companies like Cardinal Health and Cigna, that have prevented my portfolio returns from being even worse. I hold bonds in these broad funds, too. They haven’t helped much lately, though I expect bonds will soon perform better, with interest rates already having risen substantially.
This article is written in collaboration with Walt Hommerding senior vice president investment of Wells Fargo.
(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr Aslam is not an attorney, accountant, real estate broker, stockbroker, investmentadvisor, or certified financial planner. Mr Aslam does not have anything for sale.)
