Are technology stocks still stable enough?

Since November 16, technology stocks are under a lot of pressure.
Especially the chip and software stocks are under pressure.

I personally have the feeling that there’s a lot of mixed feelings in the market right now. Every bad outcome regarding growth especially from the United States hurts the market a lot.
Yes, the chip shortage is high, but the lack of sources as well. We also know that most of the technology stocks (especially the US stocks) are kinda overvalued.

What’s your feeling? Did the bubble explode? Or will they recover?

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I personally am fairly sure it will recover. But then again, it might dip down for a few months / years.

They might be kinda overvalued, but for good reasons. Corona especially has exposed how important tech is in general. And while we might see a dip, I’m fairly sure Tech will still be the best sector to invest in for the coming 10 years, even if there will be a few years of corrections. The field is just moving so fast, and is pretty much mandatory for any business nowadays (not to forget it is pretty much mandatory for any living being in this day and age😅).

But this all should be considered on a case to case basis of course. seeing as we really cant put Nvidia, Microsoft and Netflix under the same umbrella.

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Well, the US market, at least many sectors of it are indeed in a bubble looking at all the sane metrics. So eventually this will have to correct.

However, long term (5+ years) even a recession will not have much impact on your gains unless you are forced to sell for some reason.

Now, would I personally add companies like Microsoft or Apple at the current valuations even with them being among the best and most profitable/stable companies in the world? No, I will wait for the eventual correction to come along and then add them.
At the moment there are still enough underappreciated/undervalued stocks to add in their place. The time to add tech will come later.

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