Shanghai Stock Exchange

NASDAQ Plunges Lower, Off by 2%

Normally, I would step in and buy with both hands whatever I can, but I am not a buyer this time round. Markets are headed lower and for one simple reason; it has been far too easy. For the past 2 years+ the trade has been simply to close your eyes and buy any tech/AI related stocks. People have gotten too used to that and now that everybody’s caught on, the trade stops working. Granted, those are all still good stocks in growing industries but it will take time to consolidate and wash out that hubris.

I think we will see the paradigm shift away from tech for a elongated period of time. With certainty, the next move won’t be in retail, but with any luck, perhaps alternative energy will catch a bid. I have my eye on names like BP and RDS and may pull the trigger if I can get lower prices. If I was still actively managing money I would take a look at airlines here, but only for a trade. PYPL and BABA look okay here too and I may consider owning them a little lower. In the interim, I’m perfectly content with my high yielders.