Is the Tech Stock Crash Over? Or Will it Get Worse?

Are Tech Stocks done crashing…or is the worst still to come? Tech stocks in the Nasdaq have clawed back to within 5% of the high though some are still down double-digits. Tesla is down 26% and shares of the ARK Innovation ETF are still 25% off the peak. Will higher interest rates continue to push technology stocks lower? I’ll reveal what could happen the rest of the year and show you how to invest. Get all the stock market news, trends and strategies you need with The Daily Bow-Tie! Sign up Free https://mystockmarketbasics.com/dailybowtie Higher interest rates and a shift to stocks in cyclical sectors like energy and financials have blasted tech stocks in 2021. Stocks in the tech-heavy Nasdaq index were down as much as 11% from the highs in February but have recovered half that loss. There’s no question interest rates will keep rising, the question is…will it continue to cause a tech stock crash? Check out the stock simulator and Get a FREE share of stock worth up to $1000 when you open a Webull investing account with a $100 deposit! 🤑 https://mystockmarketbasics.com/webull The reason stocks in the tech sector have fallen goes to how stocks are valued. Current prices are the present value of future cash flows in a stock. Investors estimate the future cash return potential in a stock and then use an interest rate to discount those FUTURE values into a PRESENT value. When that interest rate increases, as they have been lately, then that present value decreases. So for stocks like tech stocks where most of the value is locked up in expectations for big growth and huge future cash flows, higher interest rates hit those stocks hardest and caused a tech stock crash. Now all tech stocks in the list aren’t affected equally. The big tech stocks with lots of current cash flow like Google, Apple and Intel have done well because future cash flows aren’t expected to grow as much and aren’t as much a part of the present value. The growth stocks though, names like Tesla and those held in the Ark funds, those stocks have their future cash flows as a much larger part of the valuation so are crashing hard. In this stock market live, I’ll take you through the investing news and what’s happening in stocks. I’ll show you what to expect through the rest of 2021 and what analyst are expecting in tech stocks and the rest of the stock market. I’ll then show you what could happen as interest rates and inflation push higher and how to invest in stocks. 🤑 Get The Daily Bow-Tie - my FREE daily email newsletter sharing market updates, trends and the most important news! Market Updates for the Smart Investor! https://mystockmarketbasics.com/dailybowtie My Investing Recommendations 📈 📊 Download this Portfolio Tracker and Investing Spreadsheet! [Community Discount Code] https://mystockmarketbasics.com/spreadsheetdiscount Check out the stock simulator and Get a FREE share of stock worth up to $1000 when you open a Webull investing account with a $100 deposit! 🤑 https://mystockmarketbasics.com/webull Free Webinar – Discover how to create a personal investing plan and beat your goals in less than an hour! I’m revealing the Goals-Based Investing Strategy I developed working private wealth management in this free webinar. Reserve your spot now! https://mystockmarketbasics.com/free-investing-webinar SUBSCRIBE to create the financial future you deserve with videos on beating debt, making more money and making your money work for you. https://peerfinance101.com/FreeMoneyVideos Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps. #stocks #stockmarket #investing