Finance

Is the Tech Stock Crash Over? Or Will it Get Worse?

is-the-tech-stock-crash-over-or-will-it-get-worse



Are Tech Stocks done crashing…or is the worst still to come? Tech stocks in the Nasdaq have clawed back to within 5% of the high though some are still down double-digits. Tesla is down 26% and shares of the ARK Innovation ETF are still 25% off the peak. Will higher interest rates continue to push technology stocks lower? I’ll reveal what could happen the rest of the year and show you how to invest.

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Higher interest rates and a shift to stocks in cyclical sectors like energy and financials have blasted tech stocks in 2021. Stocks in the tech-heavy Nasdaq index were down as much as 11% from the highs in February but have recovered half that loss. There’s no question interest rates will keep rising, the question is…will it continue to cause a tech stock crash?

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The reason stocks in the tech sector have fallen goes to how stocks are valued. Current prices are the present value of future cash flows in a stock. Investors estimate the future cash return potential in a stock and then use an interest rate to discount those FUTURE values into a PRESENT value. When that interest rate increases, as they have been lately, then that present value decreases. So for stocks like tech stocks where most of the value is locked up in expectations for big growth and huge future cash flows, higher interest rates hit those stocks hardest and caused a tech stock crash.

Now all tech stocks in the list aren’t affected equally. The big tech stocks with lots of current cash flow like Google, Apple and Intel have done well because future cash flows aren’t expected to grow as much and aren’t as much a part of the present value. The growth stocks though, names like Tesla and those held in the Ark funds, those stocks have their future cash flows as a much larger part of the valuation so are crashing hard.

In this stock market live, I’ll take you through the investing news and what’s happening in stocks. I’ll show you what to expect through the rest of 2021 and what analyst are expecting in tech stocks and the rest of the stock market. I’ll then show you what could happen as interest rates and inflation push higher and how to invest in stocks.

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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
#stocks #stockmarket #investing

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24 Comments

  1. Reggie Zu
    July 13, 2021 at 1:09 pm

    First 5 minutes can be skipped. Man is just advertising, and being thankful so many times, we got it.. start talking already, im lost in the blah blah blah..

  2. Mai Nguyen
    July 13, 2021 at 1:09 pm

    Beautiful mind. I'm watching this video again cuz I was getting a mani & pedi. Always love your analysis.

  3. Lover Maker
    July 13, 2021 at 1:09 pm

    When nio ath?

  4. Havoc Gaming Channel
    July 13, 2021 at 1:09 pm

    Best YT channel for investing, by far. Thanks for all the valuable content

  5. stock whisper
    July 13, 2021 at 1:09 pm

    Buy Arrival AVRL great entry point!

  6. charcoaljohnson
    July 13, 2021 at 1:09 pm

    I can't thumbs up this video hard enough, I learned so much!

  7. junebug ashdown
    July 13, 2021 at 1:09 pm

    How do feel about Disney?

  8. Liza
    July 13, 2021 at 1:09 pm

    When he has a beer and no bowtie on his neck I'm sitting the fuck down and listening😭😂😂😂😂💀👊

  9. Tanner Price
    July 13, 2021 at 1:09 pm

    Great video! I always learn so much from your videos, Joseph! Best financial channel on YouTube! Can’t wait for the next one! – PS I’m from Iowa as well. I believe you’ve mentioned that in your previous videos. How far did you have the Hawks go in the NCAA tourney?

  10. joe blow
    July 13, 2021 at 1:09 pm

    I think that "the average investor underperformed the market since February because of heavy investments in tech" does not matter, maybe if this was a year over year comparison, I would think it matters

  11. John Dawson
    July 13, 2021 at 1:09 pm

    Do you think Kodak has a upside future?

  12. Muhammad Azzalarab
    July 13, 2021 at 1:09 pm

    Always appreciate the professional insight, Joseph. So informative 👏

  13. M. Klimis
    July 13, 2021 at 1:09 pm

    Hi Joseph, I have question with regards to your Sunday Q&A, why that part disapears , the video was for 2 hours and now it only shows the 1st part only …

  14. Donald
    July 13, 2021 at 1:09 pm

    I have about 5% of my portfolio in uranium stock any advice on any other stock that I can grow my $300k capital to a million dollars?

  15. m de
    July 13, 2021 at 1:09 pm

    Happy Easter

  16. Alex Choe
    July 13, 2021 at 1:09 pm

    Alex from Thailand..Always having good information from you.👍👍👍

  17. Maricruz Cortes
    July 13, 2021 at 1:09 pm

    I have abnb I think I might be ok 🤷‍♀️

  18. Will Walker
    July 13, 2021 at 1:09 pm

    Appreciate your input. Semper fi

  19. Kay Kim
    July 13, 2021 at 1:09 pm

    Bow tie nation is one of the most reliable in YouTube

  20. Christoper Speer
    July 13, 2021 at 1:09 pm

    Happy Easter, one devil dog to another

  21. Meeting Ms Me 나를만나다
    July 13, 2021 at 1:09 pm

    This was extremely helpful to understand how the market works overall. I really learned a lot! Unfortunately, I was not able to join the live today. Would it be possible that you upload the Q&A part as well in the future? I find that part very helpful too!

  22. ckeegan74
    July 13, 2021 at 1:09 pm

    Love these more natural and relaxed Sunday sit down sessions with a beer.

  23. Thomas Wypyszinski
    July 13, 2021 at 1:09 pm

    Did you say you're down in Colombia? Wow.

  24. cgarrita
    July 13, 2021 at 1:09 pm

    So when you say rotate out of a sector, does this mean to sell your current shares of a particular sector, or just make future purchases in another sector?