After some brief respite, there’s still plenty of uncertainty in the markets right now – especially around growth and tech stocks. In order to let you in on what the heck is going on, I’m going to reveal some industry insights.
These will include how retail traders are hoping things will bounce back and what the experts have to say about it all. Keep reading for the latest investment scoop and find out how investors are interpreting the latest market movements.
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What’s going on with stocks right now?
Tech stocks in particular have been having a pretty awful time lately. Netflix (NFLX) was one of the first FAANG investments to take a whopping downturn, and plenty of other tech share prices followed suit.
This came after news of slowing growth for the world’s favourite binge-streaming service. And it seems like slow growth for high-growth tech stocks is a big no-no. Meta (previously known as Facebook) hit headlines as they reported a first EVER drop in the number of active users on its platform.
It was news that led to a catastrophic meltdown for the Meta (FB) share price. The stock saw its biggest daily market loss since Mark Zuckerberg created the company in his Harvard college dorm and subsequently released shares to the public.
How are retail investors reacting?
You might think that all this negative press and price action is deterring retail investors from stocks such as these. However, it seems quite the opposite is happening.
According to Capital.com, since the beginning of the month, 77% of all trades on the platform have involved the Nasdaq 100.
Although there has been some selling-off, loads of investors are choosing to ‘buy the dip’. This has led to a big uptick in the number of recent Meta investors, with plenty picking up shares at a discount to previous highs.
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What do the experts say about the potential for these stocks to bounce?
David Jones, chief market strategist at Capital.com had this to say about the current state of the stock market: “The NASDAQ 100 remains at the top of the list for plenty of traders this week as the volatility in stock markets continues.
“After plunging by 16% in a few weeks at its worst point in January, we had seen an impressive bounce back into February. But for now, at least, the jury is still out on whether this is just a “dead cat bounce” before stock markets turn lower once again.”
How can investors buy stocks in the current climate?
David Jones goes on to explain that: “Traders and investors have been well rewarded for buying the dips over the past 18 months. But at some point that won’t work anymore, at least for a while.”
So, where should you look for hot stocks? Some investors are pouring money into investments related to Natural Gas. This is partly due to the price of the commodity jumping 50% recently.
However, the arctic blasts that are leading to an increase in demand for energy in the US could soon subside. This could potentially lead to further price volatility in the opposite direction.
Whichever way the wind blows, and whether markets move up or down, there’s only so much you can control. One way to make the most of the current situation is to use a top-rated dealing share account to buy shares in the firms you think will bounce back.
Just remember that investing carries no guarantees. So, research wisely and don’t invest more than you can afford to lose. It’s best to think like a long-term investor rather than a short-term trader.
