Bloomberg给这次大跌定性了 😄 Tech Drop Is a Healthy, Albeit Painful, Correction
The sharp U.S. tech stock drop over the past few days is a healthy correction -- although whether it feels like one depends on the investor’s entry level.
For those who got long of the tech-heavy Nasdaq (or individual tech names) any time from late March until the end of July, the swoon hasn’t hurt too much. Obviously, given the one-way traffic over that time, the earlier one got long, the happier one might be. Yet, given that all of August’s gains have been wiped out in recent days, many post-July entrants into a long position will be seeing recent price action as painful.
Perhaps the most healthy aspect of the Nasdaq slide is that it reminds us all that markets are not a one-way street. Nothing goes up in a straight line -- two-way price action is a sign of a well-functioning market. Investors should expect peaks and troughs, even in a strong trend.
Although this all may sound trite and obvious, the old trading adage of “look after the downside, and the upside will look after itself” is appropriate. This may yet be a minor setback for U.S. tech stocks, or it may be the beginning of a new downside trend. Either way, expect more two-way price action in the future.
The sharp U.S. tech stock drop over the past few days is a healthy correction -- although whether it feels like one depends on the investor’s entry level.
For those who got long of the tech-heavy Nasdaq (or individual tech names) any time from late March until the end of July, the swoon hasn’t hurt too much. Obviously, given the one-way traffic over that time, the earlier one got long, the happier one might be. Yet, given that all of August’s gains have been wiped out in recent days, many post-July entrants into a long position will be seeing recent price action as painful.
Perhaps the most healthy aspect of the Nasdaq slide is that it reminds us all that markets are not a one-way street. Nothing goes up in a straight line -- two-way price action is a sign of a well-functioning market. Investors should expect peaks and troughs, even in a strong trend.
Although this all may sound trite and obvious, the old trading adage of “look after the downside, and the upside will look after itself” is appropriate. This may yet be a minor setback for U.S. tech stocks, or it may be the beginning of a new downside trend. Either way, expect more two-way price action in the future.