Dear readers, yesterday the performance of the US stocks markets was mixed. Dow Jones Index headed south by 1.39%, the S&P 500 retreated by 0.56% but the NASDAQ Composite which is constituted mainly of technology stock headed north by 0.53%. This is not surprising to me since those US-listed technology-related stocks which I have been tracking have been trending higher and higher for quite a while already. There is really too much bullishness in this sector. Investors are finding safety in technology-related stocks but I could just think it is a matter of time that the bears catch up with the technology sector.
For one thing is crystal clear, there is no catalyst, no impetus in the macro stocks markets to sustain stock prices higher. If investors want to find safety in technology sector or other sectors of the stocks markets, I would caution that when the stocks markets corrections come, every sector is going to be affected. For safety, I would advise investors to focus on liquidity. Cash is King where it comes to stocks markets corrections.
I know it is tempting to invest in the stocks markets for now, especially those stocks that you are targeting now is making new highs each day. But really, when stocks markets corrections come, it needs no advanced notification. And from how I see it, the entry point into stocks markets now has limited upside given the dire state of the global economy and the fact that Covid-19 has not really gone away at all!
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