Here’s Why I Choose Big Tech📱💻 Over Meme Stocks. What About You Fellow 🐯🐯🐯❓
After a volatile 2 years, AMC & GME are now trading above their price levels of 15 Jan 2021 just before the meme stock frenzy began. Last week's short-squeeze followed a post-Fed rally. Nasdaq surged 3.25% on 2/2 (Thu)🐂🐂🐂- its biggest 1-day jump in over 2 months - led by over 20% surges in orthodontic company Align Technology (ALGN) & ♾META. That came just a day before a sharp sell-off on 3/2 (Fri)🐻🐻 when stronger-than-expected 🇺🇸 jobs data sparked a sell-off🎢📈📈📉
The latest short squeeze, implying that stock prices rose so much that bearish bets become too expensive to hold, saw hedge funds caught out by a sharp rally in equities on 2/2 after Fed slowed the pace of interest rate hikes & markets anticipated that rates would peak soon.
⚠️ Resurgent risk appetite among some investors has also fuelled rallies in the shares of so-called meme stocks since the start of this year, though many analysts are sceptical the recent moves will last.
‼️ According to a Goldman Sachs (GS) research note, hedge funds betting against stocks globally abandoned those trades last week at the fastest pace since 2015, surpassing the speed of their exodus from the meme stock frenzy seen in January 2021.
‼️ GS also added that hedge funds exited many long positions in Asian developing markets & Chinese equities last week ➡️ Now we know why the HSI correction😅😅😅
🤔💭My Thoughts: Big Tech 🆚 Meme Stocks
(1) If hedge funds exited their trades last week, then upward catalysts for the meme stocks will be reduced.
(2) Even though we can make 💰 from meme stocks, due to the unpredictability & volatility of meme stocks, it takes very close monitoring & a good knowledge of technical analysis to know when to buy & sell to avoid being burned🔥🔥🔥
(3) Why stress ourselves to buy meme stocks, many of which are loss-making companies (some even at risk of bankruptcy) when we can buy big tech which are profitable companies with strong fundamentals❓
(4) Moreover big tech are at a great discount now & are just performing poorly because of the 🐻 market. Once the Fed pauses interest rate rises, big tech will start to 🚀🚀🚀 again.
(5) A BIG difference between meme stocks & big tech is that big tech will likely recover if we average down enough🤓 but meme stocks may never recover😅 As of now, big tech are already recovering😉🤗🥳
$Apple(AAPL)$Fellow 🐯🐯🐯 which Big Tech are you most 🐂-ish for❓Type away in the comments section & share it with me❣️
Please help to click on the “Like” & “Share/Repost” buttons at the Bottom Right corner so that more 🐯🐯🐯 can access this information, many thanks🤗🥰 You will Greatly Encourage Me❣️
As usual-🤔💭 Consider POV & Actions of investors + 👩🏻💻👨🏻💻 Research + 🗑FOMO & Greed = Investing Wisely 🤓🤗 + Accumulating Wealth 💵💰
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Big Tech Gogogo!!!
Definitely FAANG for me too!