March Tech Selloff

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The stock market has not been nice to tech stocks in the last few weeks. I’ve seen this before and it usually ends badly for all stocks. There are some areas of strength, like basic materials, but those stocks can also come down if the selling continues. I bought a few tech stocks that have come down and sold some that didn’t look like this was a good time to keep holding them. They say that this is the time to be buying, but that can be difficult when prices continue to drop through support levels. In the end, it is a war between momentum players and growth/value investors. Normally, I’m a value investor who looks for stocks that can increase in value based on a future event. I look out 2 or 3 months and try to find a catalyst that will drive a stock higher. Momentum players only look out a few hours or days and jump into a stock based purely on price action. To have stocks fall as fast as they are also means that short selling is in play. My plan is to wait out this non-sense and go back to avoiding stocks with high volatility. The EV transition will continue and the companies who lead and innovate in this sector will do well in the coming years. Genome companies on the leading edge will also do well as they find new ways to deliver healthcare treatments to the world.

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