Tech stocks wrecked

[Hanno Labuschagne]

Tech stocks wrecked

The hammering in technology stocks that began to spread into the broader market Wednesday is being fueled by one of the most intense bouts of selling by professional speculators since the financial crisis.

Hedge funds, which spent December unloading high-growth, high-valuation stocks, began the new year by jettisoning software and chipmakers at a furious pace.

During the four sessions through Tuesday, these sales reached the highest level in dollar terms in more than 10 years, data compiled by Goldman Sachs Group Inc.’s prime broker show.

[Bloomberg]

 

[rvZA]

This is only the start.... prepare for bigger losses coming in these stocks.

 

[3WA]

Spelling mistake in title. It's spelled “rekt”

 

[B-1]

Good timing by me due to pure dumb luck as I sold most of my tech stock at the end of last year. Hopfully I can get back in at the right time.

 

[rvZA]

Good timing by me due to pure dumb luck as I sold most of my tech stock at the end of last year. Hopfully I can get back in at the right time.

This year will be extremely difficult on US markets. Investors fear inflation and the upcoming rates increases. I think there will be a continuous decline in 2022 and 2023 on the US markets. I will wait for 2024 elections and see what happens before investing there again.

 

[B-1]

This year will be extremely difficult on US markets. Investors fear inflation and the upcoming rates increases. I think there will be a continuous decline in 2022 and 2023 on the US markets. I will wait for 2024 elections and see what happens before investing there again.

Where are you investing in the meantime?

 

[rvZA]

Where are you investing in the meantime?

Most of my funds are now invested in UK and European stock. But, I am considering moving a lot of it into Japan over the course of this year.

 

[*SynergyX*]

one day -- people should really calm down -- until we see 10-20% of value wiped off indexes these things are normal and healthy

 

[Pegging]

So after all those adjectives descibing the carnage, it comes down to this:

Before Wednesday, Goldman’s hedge-fund clients snapped up airlines, energy and industrial shares during the previous four sessions. As a result, their technology exposure relative to the S&P 500 dropped to the lowest ever recorded by the bank

So it won't change the S&P much in the long term.

And the shares that the hedge funds have sold were happily bought by people who disagree with them.

 

[Pegging]

Most of my funds are now invested in UK and European stock. But, I am considering moving a lot of it into Japan over the course of this year.

Oh noes! You have to pay millions in CGT on your massive portfolios then.

 

[rietrot]

one day -- people should really calm down -- until we see 10-20% of value wiped off indexes these things are normal and healthy

Wait what? With the sensationalist headline I expected a 50% drop.

 

[Vox Populi Vox Dei]

Yeah, not expecting the high double-digit returns I've been obtaining since investing in the US since the end of 2016 this year, but there will be always be lean years.

You got to be investing until 2025, not the next month or year.

 

[cguy]

This year will be extremely difficult on US markets. Investors fear inflation and the upcoming rates increases. I think there will be a continuous decline in 2022 and 2023 on the US markets. I will wait for 2024 elections and see what happens before investing there again.

Most of my funds are now invested in UK and European stock. But, I am considering moving a lot of it into Japan over the course of this year.

Why don’t you short instead?

 

[*SynergyX*]

Wait what? With the sensationalist headline I expected a 50% drop.

exactly -- its a mere blip at this point

 

[JayM]

Why don’t you short instead?

Puts are probably safer. Going short has potentially unlimited losses. In any case, I don't think you can claim borrowing costs on your tax return either.

 

[Cage Rattler]

Edit ... Sell OTM index call-spreads to fund the puts. You can then define your risk.

 

[LegionnaireJ]

Edit ... Sell OTM index call-spreads to fund the puts. You can then define your risk.

Curious as to which platforms you guys are using from SA to get access to options trading etc? Local platforms seem to have limited capabilities.

 

[JayM]

Edit ... Sell OTM index call-spreads to fund the puts. You can then define your risk.

NDX/SPX puts are expensive now, and premiums for OTM call options are not great. Even with inflation, probably better just to hedge by liquidating and holding a bigger cash position, or moving some cash into a risk managed covered call fund.

Or go full WSB and sell naked puts on TQQQ.

 

[JayM]

Curious as to which platforms you guys are using from SA to get access to options trading etc? Local platforms seem to have limited capabilities.

Interactive Brokers lets you do almost anything you want if you have >110K NLV.

 

[gregmcc]

Wrecked....the new massive!