Tech Industry Set to Have Multi-Years of Malaise
On February 8th I hinted that the market may be low-key hinting of a large sell-off. Unknowingly, no one was aware to the magnitude of the selling. With the virus clearly acting as a massive Black Swan, the markets (as I have been saying repetitiously) over the last while, are in deep trouble and the selling is FAR from over.
Many stocks have, especially in tech, formed massive 5-6+ year shooting stars and the wealth transfer has begun. The glory days are over and no one should be longing any equities or you will be disappointed unless you are scalping or swing-trading. The only real 'true' longs will be in energy when crude rises with inflation for those that outlast this historic bear market in oil.
The way you can set yourself up from 2021-2030 is by accumulating Gold at 1380-1400 and Silver at 8-10 as the next decade will be the decade of precious metals going parabolic. Pick the commodity directly, not mining stocks. Why the run for metals? Epic money printing, globally low interest rates, negligent fiscal policy and a plethora of other reasons which have all been amplified to the nth degree due to the virus.
The aforementioned reasons will lead to inflation into hyperinflation and into stagflation. This will cause an additional recession after this current one before the markets have any shot of hitting new highs. That's right, we could be waiting a decade before the Nasdaq makes a new high.
This phenomena will not just be for Microsoft, but many other tech companies.
Remember, many stocks are overvalued numerically because of free money over the past 10 years. This allowed CEOs to buy-back stock and inflate the price. Now that times are tough they need bail-outs. Really? I think not.
- zSplit
Many stocks have, especially in tech, formed massive 5-6+ year shooting stars and the wealth transfer has begun. The glory days are over and no one should be longing any equities or you will be disappointed unless you are scalping or swing-trading. The only real 'true' longs will be in energy when crude rises with inflation for those that outlast this historic bear market in oil.
The way you can set yourself up from 2021-2030 is by accumulating Gold at 1380-1400 and Silver at 8-10 as the next decade will be the decade of precious metals going parabolic. Pick the commodity directly, not mining stocks. Why the run for metals? Epic money printing, globally low interest rates, negligent fiscal policy and a plethora of other reasons which have all been amplified to the nth degree due to the virus.
The aforementioned reasons will lead to inflation into hyperinflation and into stagflation. This will cause an additional recession after this current one before the markets have any shot of hitting new highs. That's right, we could be waiting a decade before the Nasdaq makes a new high.
This phenomena will not just be for Microsoft, but many other tech companies.
Remember, many stocks are overvalued numerically because of free money over the past 10 years. This allowed CEOs to buy-back stock and inflate the price. Now that times are tough they need bail-outs. Really? I think not.
- zSplit