Following the market sell off earlier this year in February, there was a more specific sell off experienced yesterday, concentrating on the Technology industry, and of course people are panicking. There is no need. Stock will be stocks, they will grow in price and they will also fall. Therefore, we suggest 100% equities to aggressive client, because stocks are volatile.
Stock indexes, including the Dow Jones Industrial Average, felt the impact of the fall in prices, where millions of US dollars in market value was lost, causing the Dow to lose over 300 points (the lowest since March 1), S&P 500 to lose over 39 points and the Nasdaq Composite falling more than 137 points (both at its lowest since February 8).
Amidst the increase in interest rates and the slow pace in which the market is building back up its momentum, technology stocks like Facebook [NASDAQ: FB], Netfilx [NASDAQ: NFLX], Amazon [NASDAQ: AMZN] and Google [NASDAQ: GOOGL] are generally all solid companies, some being more aggressive than others.
Facebook stock fell just short of a 7 percent decline, the largest decline in over 4 years, Google fell a little over 3%, closing at USD $1,100.07, Netflix just below 2% and Amazon 1.7%. What does this mean?
Purchasing these stocks as the prices go down, will benefit you whether you already hold the stock or not. How?
It will either lower your average cost or put in you a position to make gains when the stock prices increase. Isn’t making money the aim?
Keep in mind that having a portfolio full of technology stocks is however not wise. Diversification is always stressed to balance a portfolio.
Can you imagine if you had all technology stocks during this sell off? Your total portfolio market value would be in the negative!
Avoid this by diversifying and remaining confident in solid companies. GOOGL, AMZN & FB are stocks we at SSL strongly recommend.
If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.