Am I still buying Tech?

Last week we started a mini-series talking about the tech industry and its recent activity in the market. This week, I’m explaining why (despite its slow-down) I’m still (cautiously) optimistic about this sector.

Should we panic over the slow-down?…

While I’m not viewing the price action as abnormal under current circumstances, that doesn’t mean this couldn’t turn into a red flag. This could easily lead to more volatility, and a potentially significant stock market correction prior to the election.

Especially with the breaking news that seems to be coming from the White House on a daily basis.

Tech stocks have been President Trump’s darlings and with the market cap of the MAFAANG’s alone (MSFT, ADBE, FB, AAPL, AMZN, NFLX, and GOOGL), these stocks act as weights on the broad indexes and behave as market leaders. Where they go, the Nasdaq and S&P typically follow.

I’m not viewing this as the end of technology strength forever. I’m looking at it as a reprieve… one the market could use. When the market has the answer about which party will hold the White House, I expect tech to resume its reign of ‘Best in Wall Street’.

Am I Still Buying?


Though valuations in this sector are high, companies like Microsoft (MSFT), Adobe (ADBE), Tesla (TSLA), Netflix (NFLX), Facebook (FB) and more have done more than just survive throughout the pandemic — they’ve thrived. These are good, solid companies that are the cornerstone to my portfolio, and regardless of who wins the upcoming election I’ll continue to hold and buy tech — particularly with the sale in prices during this current pullback.

Right now is a great time for investors to accumulate funds and enter the stock market as the macro situation becomes more certain and prices are pulled back from highs.

Where Do I See The Most Value?

The tech sector can also be broken down into various smaller industry groups and when done right, you can find tickers that could hold a lot of value. Right now I’d focus on the key, work from home winners. I love the cloud (MSFT, ADBE, VEEV, ORCL), housing (LOW, HD, KBH), and retail (specifically those with a strong ecommerce presence) tickers that provide goods needed in a WFH environment (this also includes BBY and TGT fyi).

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