Loving a good bargain! 

It looks like the market sectors are taking turns to take blows from the possible effects of the FOMC efforts to rein in inflation by tightening money supply as well as of course inflation itself.

The tech sector is not immune as discretionary spending is reduced thanks to elevated prices of essentials and necessities. Couple that with inventory correction and we can see tech companies one after another reducing estimates just a few months later. How long this pressure on earnings will last depends on multiple factors but what is more important is the opportunity that arises from it.

I will not deny that the consumers are hit hardby inflation as are the enterprises. However, I believe there is a silver lining and there will be some companies that emerge stronger from here on. Companies that are aligned with strong microtrends will emerge stronger and I believe $AMD(AMD)$ is one of those that is in the category. $NVIDIA Corp(NVDA)$ is another one within the same microtrend that will most likely do well in the future.

The shares of these companies have retreatedfrom sky high valuations at their peak to ridiculous low levels now giving credence to how investors behave at peak emotions. When irrational exuberance prevails, no price is too expensive but when excessive pessimism takes hold, no price is good enough! And that is reflectedby the analysts who were justifying high prices and promoting buys only a few months backand now they keep saying the sky is going to keep dropping promoting ever lower P/Es. How fickle and easily swayed are people thanks to circumstances!

I am not saying that there is no justification totheir theses. Of course there are. The macroeconomic picture is not looking fantastic and the Feds are not really aligned with the market now. But I believe certain sectors have corrected too much and the baby is being thrown outalong with the bath water if I were to borrow an appropriate proverb.

I believe the tech sector is one and this sectoris not the same it was two decades ago. In fact, this sector is the future and the price they have retreated to is a generational opportunityto seize and grasp. These bargain basement prices will not last for long and once inflation isunder control and the threat of recession tidesover, expect strong companies from this sector to surge forward. In fact I believe new behemoths will emerge to challenge the FAANGs and $AMD(AMD)$ and $NVIDIA Corp(NVDA)$might just be one of them if not both.

Stay safe 😊