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- David Marsh : this is just the beginning of a longer downturn.
David Marsh : this is just the beginning of a longer downturn.
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Loading...This week kicked off with more bad news for tech stocks, dragging major U.S. indexes into correction territory that some experts predict is just the beginning of a longer downturn.
Tech is facing a mounting sell-off amid growing fears of regulation and companies hit by scandal, production problems, testing accidents and President Donald Trump's Twitter ire.
"All these tech stocks in America or other parts of the world are a little bit like the British royal family," said David Marsh, managing director at think tank the Official Monetary and Financial Institutions Forum (OMFIF). "You put them on a pedestal one day and they're great … And you knock them off the next day."
Indeed, the last year saw tech stocks, in particular the FAANGs — Facebook, Amazon, Apple, Netflix and Google — hit record highs. Now, amid growing fears of regulation and a number of companies hit by scandal, production problems, testing accidents or President Donald Trump's Twitter ire, the much-vaunted sector is facing a mounting sell-off.
Too much money has been herded into too few stocks, said Robin Griffiths, chief technical analyst at the at U.K.-based currency investment firm ECU Group, which means we're likely to see a rotation out of the tech sector as investors attempt to de-risk.
Source: Bloomberg Pro Terminal
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