Today, NASDAQ closed over 33% lower than its highest point back on November 22, 2021. The last three trading days have seen a huge drop across all major tech stocks.
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What's next for the markets? As always, it is always difficult to project future swings but Wednesday we will see either a .50% or .75% interest rate hike. The market is betting 60% that the hike will be .50%. Just last week, it was only 3% that the hike would be .75% (now 40%)
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At these depressed levels, trying to time the bottom of a market is always a futile endeavor, but buying quality tech stocks now wouldn't be a wrong move if you can stomach another possible 5-15% drop in the market.
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With the market down quite a bit from Nov '21, there is still plenty of room before we hit the floor of this drop. With inflation numbers still accelerating, war in Europe and energy prices increasing dramatically, it could be over a year before we see stability in markets.
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Lower risk plays are to buy and hold tech stocks with a good balance sheet, dollar cost average down if the markets drop another 5% and 10%, and look into '24 LEAP call option debit spreads on stocks like $T.
Rewards up to 125% over the next 12-18 months with minimum downside.