© Reuters. Here are the tech stocks that have lost the most ground: buying opportunities?
25 tech stocks listed on the Nasdaq have lost more than 20% from their 52-week highs. The ranking is led negatively by Twitter, which fell 51% from its highs reached in February 2021
The tech shares listed on the Nasdaq were the protagonists of the retracement, in some cases very heavy, which took them deep into Bear territory, following the change in monetary policy of the Federal Reserve, which decided to anticipate tapering, that is to say the reduction in purchases of securities, and to trigger a cycle of interest rate hikes, which according to some observers could begin as early as March. As always in these cases, the reactions of investors are opposite, and it goes by who rushes to sell to limit losses in view of further declines, and those who prefer to take advantage of heavily discounted prices to enter or strengthen positions already in the portfolio by lowering the book value.
SALES TRIGGERED BY THE TURN OF THE FED
Marketwatch has wondered if the second hypothesis might be the most valid, and has hunted for the stocks that have dropped the most, indicating them as possible opportunities to enter at sale prices. He found 88 in all, and selected them 25 traveling at a minimum of 52 weeks with a distance from the maximums ranging from 20% up to 50% and more. 20% also represents the technical threshold beyond which a stock is considered to be in the Bear territory and no longer as a simple correction, which is triggered instead after a drop of more than 10% from the recent highs. On January 5, the left 3.5% on the ground, with declines accelerating after the publication of the minutes of the last FOMC meeting of the Fed last December, which revealed that some members of the Central Bank aim not only to reduce purchases, but also the size of the Fed’s balance sheet …
** This article was written by FinanciaLounge
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