Re: Technology Companies overbought?
Posted: Fri Mar 13 2020 12:06pm
Airline Sector
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The cashback site you own
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My sense is that market valuations of many tech businesses are driven by fomo and are not justified by the underlying fundamentals. The current sharp falls may cause a reassessment of value and whilst some tech stocks will bounce back over time, I think prices will be less frothy.
It does have an effect on your life as you most likely have a pension and they will very probably be invested, at whatever percentage, in technology shares.pabenny wrote: ↑Fri Mar 13 2020 2:06pmMy sense is that market valuations of many tech businesses are driven by fomo and are not justified by the underlying fundamentals. The current sharp falls may cause a reassessment of value and whilst some tech stocks will bounce back over time, I think prices will be less frothy.
That said, I'm not an active investor, so I don't really care much about the performance of individual shares.
interesting points.. i'm broadly happy in that Amazon continue to grow as a retailer, with other branches to the business too, and Alphabet dominates search, video uploads and wil continue to become a more important method to reach customers. i do think that the Coronavirus volatility is set to shake out weaker companies: picking those that will bounce back from being oversold, along with in theory shorting the ones who could drop much lower, represent a real opportunity.pabenny wrote: ↑Fri Mar 13 2020 2:06pmMy sense is that market valuations of many tech businesses are driven by fomo and are not justified by the underlying fundamentals. The current sharp falls may cause a reassessment of value and whilst some tech stocks will bounce back over time, I think prices will be less frothy.