To The Moon

As we enter the new year, there’s one big question on everyone’s mind. Should we invest in US tech or Chinese tech for 2023? 

Starting with US tech, there’s no doubt that this industry has been doing well over the past decade. By the end of 2021, the US tech industry was worth an estimated $1.6 trillion. The current US Tech market estimates to account for 35% of the total world market. American tech companies are responsible for some of the most innovative and cutting-edge products and services in the world. Some notable names include: Alphabet, Apple, Microsoft, Amazon and more

Introduction

However, in the past few months, the US tech stock prices have also taken a beating. In 2022, the tech-focused NASDAQ has declined by over 30%. The following is mainly attributed to economic uncertainty, rising interest rates and disappointing earning results. As a result, the narrative for investing has also gradually shifted from forecasting future growth to profitability. Hence, many US tech stocks are now less appealing to investors as most of them are not yet profitable. However, for profitable US Tech companies, could this be an opportune time to invest in them?

Turning to Chinese tech, this is an industry that has seen many headwinds in the recent two years. The most noteworthy event would be China’s tech crackdown by the Chinese regulators on data usage and monopolism acts. As a result, many Chinese tech firms’ earnings were also affected over the past 2 years. This has triggered a selloff for many of these Chinese Tech firms. It was estimated that more than $1 trillion was wiped off from the market value of some of these prominent companies. 

However, the easing of China’s covid policies has gotten many investors excited. Many are expecting the Chinese economy and consumption to recover which will eventually benefit the Chinese firms. It seems to be a matter of time before the Chinese economy recovers. Could now be a good time to start investing in them?

Both the US and Chinese Tech companies seem to have their fair share of pros and cons. Let’s take a closer look into the qualitative and quantitative factors to determine.

To read more: https://learntoinvests.com/invest-in-ustech-chinese-tech/