The Nasdaq-100 Index (NDX) has had a tech sell-off. This could be a historical market correction. Nasdaq and the S&P500 have dropped by over 10% from their 52-week high.
Corrections last about 96 days on average and the last three months have shown negative market returns. Will November be different? There haven’t been 4 consecutive negative months since 2009.
Pullbacks are normal and can be healthy. It could prove to be the tech stock buying opportunity some investors have waited for. Why?
Nigel Green, deVere CEO says, “First, the AI Race is intensifying, as firms are racing to lead in the development, deployment, and utilisation of artificial intelligence technologies. It is going to reshape whole industries, create new ones, and fuel innovation beyond what we can currently imagine.
Second, tech companies are known for their ability to pivot and adapt to changing market conditions. They’re well-equipped to weather the storm of rising interest rates and adjust their strategies to maintain profitability and relevance.
Third, the market fears are presenting opportunities to purchase high-quality tech companies at a lower cost, allowing investors to potentially benefit from capital appreciation when the market rebounds.”
Historical data shows that this tech sell-off will provide an opportunity for investors to selectively acquire tech stocks with solid fundamentals and growth potential. But as always, ensure that your investment portfolio remains suitably diversified.