Big tech tripped out of the gates to start 2022 with the Nasdaq 100 falling as much as 20% with inflation fears and geopolitical tensions arising out of Ukraine being the main market movers so far this year. However, things could be turning around.
It’s been easy to fall in love with tech, especially within the last couple of years. The sector was the toast of the town during the peak of the pandemic as technology was leaned on heavily amid social distancing measures.
From purchasing online goods and services to cloud computing operations, it was difficult to miss with tech. However, with inflation fears putting downward selling pressure on tech, opportunities may have opened up when it seemed like a lot of tech names were overblown. As such, some investors may have used the recent sell-offs to buy the dips, but that may have also proven to be a painful strategy.
It’s difficult to buy low and sell high when something keeps going lower.
“With many of the former leaders in the sector facing heavy selling pressure to start the year and the tech-heavy NASDAQ index flirting momentarily with bear market territory, buying the dip hasn’t exactly been a winning strategy this year,” The Street reports.
A Comeback in the Works?
With the Nasdaq 100 heading into bear market territory, things are starting to finally turn around. The Nasdaq 100 is up close to 6% within the last month as it looks to slough off inflation fears.
It could be that the capital markets already priced in rate hikes by the Federal Reserve. The recent move by the Fed to up the federal funds rate by 25 basis points didn’t seem to stifle the latest rally over the past week.
Investors feeling the bullish vibes may want to look at the most liquid exposure they can get via the Invesco QQQ Trust (QQQ). Whether it’s a long-term investor or a day trader investigating the fund, QQQ can be of service.
For more news, information, and strategy, visit the Nasdaq Investment Intelligence Channel.