Technology stock prices have plummeted again. Does this mean that a downward trend has started that will last a little longer? That could be the case. But it could also be a good time to get in.
It sounds strange, but many investors have been waiting for this price drop for a long time. Some because they believe that technology stocks have already risen too high and that valuations are now inflating, which are no longer justified despite the high expectations for artificial intelligence. Others waited for the price drop because they hoped for a new entry opportunity to buy more stocks from the tech sector. These investors believe that AI stocks will continue to rise.
But was it a long overdue minor correction that happened on the stock markets this week? Or the beginning of a longer period of weakness for technology stocks?
Source: Stern
