The fall in tech stocks last week did not lead to panic on the market as a whole, but resumed comparison with the 2000 bubble.
The main culprits for the fall this time were the FANG group shares - Facebook, Apple, Netflix and Alphabet, or these are assets with stable profits and serious development potential. The decline in the technology sector in 2000, however, was driven by shares of companies with hollow profits and not by market leaders at that time, such as Microsoft and Cisco.
On the other hand, the interest rates in the country are quite low, and the Fed will probably consider the next increases. While interest rates are low, it will cause income to rise, and hence the stock market.
Kato Kokot says critics point out the chaos in the White House as a reason for a possible future sale of the markets, but the President's problems are unlikely to be enough for the massive Sell Off.
"I think the SP500 could reach $ 3000 by 2021, based on continued low inflation and slow but steady economic growth under conditions of low interest rates," Kokok added.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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