I'm still pretty much a rookie... What's up with US Tech stocks?


Buy or sell... What to do?

And also some Info on Brent crude oil

Beginner

S B
Asked 1497 days ago
Sunelle Byleveld

2 Replies

Hi Sunelle, I'm rather bearish when it comes to the US tech stocks, for reasons that are both company and market-specific. However, it is possible to make money in a falling market when you go 'short'.

The overall investment context is negative as central banks around the world raise interest rates and reduce quantitative easing (QE). As interest rates rise, asset prices fall. This explains, in part, the recent falls we have seen across the world's stock markets.

Tech giants also face the prospect of increasing government regulation.
* This is true of Facebook over concerns that the Russian government meddled in the US elections.
* It is also true of Google, which captured 69% of web searches in the USA in 2018 and has a monopoly in a large number of other world markets (Russia and China are notable exceptions).
* As for Amazon, it's dominance could also trigger calls for a break-up. It captured 49% of e-commerce revenues in the USA in 2018.
* Apple faces concerns of its own, over slowing iPhone sales.

If you expect a company's stock to fall, you should short its stock. Going short entails borrowing a stock and selling it now, with a view to purchase it back later and repay your loan once its price has fallen. Your profit is the difference between the current and future price, less transaction costs. If this still sounds complicated, I recommend reading AvaTrade's guide to shorting.

S B
Answered 1493 days ago
St├ęphane Bottine

Seems like US tech companies are not doing well lately as there is decreased investors interests for investments in those companies. Option is to go short for some time. Regarding crude oil, situation is currently mixed. As per technical analysis there is some indication of short term bearish trend

M Y
Answered 1454 days ago
Mila Yowa

Replies to this question have been closed.

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