Have stocks reached an impasse? For the last six months, the market has bounced back in a V-shape despite the havoc COVID-19 has wreaked, spurring an unprecedented economic and financial backdrop. Standing at the front of the pack has been the tech sector, with the space holding up strong. That is, until a few days ago.
According to Bespoke Investment Group, Thursday September 3 marked the Nasdaq’s largest one-day drop from a record high in its history. The following session also saw the index land in the red.
Weighing in on the decline is five-star analyst Daniel Ives, of Wedbush, who notes the “sell-off is a speed bump on a path still higher for tech stocks.” He commented, “While today’s massive sell-off will cause some white knuckles on the Street as fears of a tech bubble and stretched valuations become the talk of the town, we continue to believe the secular growth themes around the tech sector are unprecedented with the COVID backdrop accelerating growth stories by 1-2 years in some cases… we view pullbacks like today as opportunities to own the secular growth stories.”
With Ives estimating tech stocks could climb 20-25% higher going forward, we…
