Posted on 02/09/2016 11:25:53 PM PST by Citizen Zed
Former high-flying tech stocks Amazon, Netflix and Tesla are crashing back to earth.
All three popular stocks are down at least 23% so far this year, and a host of other tech stocks have fared far worse.
Their downfall is part of the broader plunge for the tech-heavy Nasdaq. The index is down 14% this year, almost twice as much as the Dow.
"It's a risk-off environment -- when the focus is on hopes and dreams, it's very easy to invest in tech companies that don't have current earnings. But when the environment changes, they get hurt," said David Kelly, chief global strategist at JPMorgan Funds.
It's gotten so bad that the Nasdaq bull market is currently on life support and may not live to see its seventh birthday this March. The index is down 18% from its all-time intraday high that was set in July. If it gets below 4,185.55, it'll be in a "bear market," which signals a 20% decline from previous highs.
The Nasdaq got dangerously close to that level on Monday and is trading around 4,278 on Tuesday as worries about oil prices, European banks and global growth continue to drive fear on Wall Street.
Fear is in. Risk is out
The Nasdaq dive is a reflection of the deep fear coursing through Wall Street these days. Investors are running away from risky things (think: GoPro or biotech) in favor of the perceived safety of cash, gold and government debt.
(Excerpt) Read more at money.cnn.com ...
Gold is up 12% YTD.
End Time Bible Prophecy Ping
Harbinger/Shemitah
Year of the Shemitah. The principle of sabbatical years of the land.
To be on the End Time Bible Prophecy Ping List, FReep mail me or Saveferris
Bears this year convert voters to Republicans.
I hope they’re grisly and polar bears
Japan down over 17% for the year => http://money.cnn.com/data/world_markets/nikkei225/
Food and guns are always a good investment, even when times are good. Stock market crashes, natural disasters and war are always unpredictable which is why we should always be prepared.
I’m a contrarian. If people now are predicting a stock market tragedy, then it will not happen. Yes, there is a slump now, but my gut feeling is it will recover.
You would have thought people would have figured out that some of the .com’s have no revenue. They make money by duping investors. Example. Facebook-I can post a picture of the left over meatloaf I had for dinner. Big deal and who cares. LinkedIn-Same thing for business people but even more annoying daily. They don’t produce anything of value or add value to anything. Bring back manufacturing. Go Trump.
I think it’s a mistake to consider Tesla a tech stock. More like a scam than anything else. BTW, that doesn’t mean people can’t like their Tesla car. It means the company has never made a dime in profits and probably never will.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.