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What In Tarnation Is Going On In The Stock Market?

The stock market is volatile and never ends. This is the cause of the ups and downs …
Unless you’ve been sleeping under a rock lately, and if so, please tell me where you can find a good rock to put your head down. You definitely know that the stock market is one of the roughest vehicles these days.
The stock market has recently become as crazy as the Hulk roller coaster at Universal Studios.
And there seems to be no end to the visible madness.
For example, consider the fact that at the time of this writing, the Dow has rebounded 800 points and the trading day is not over yet.
Also on Monday, the Dow recovered from a loss of over 1,100 points and closed higher. The technology-intensive Nasdaq Composite has recovered from a loss of nearly 5%, the largest rebound since 2008. The S & P 500 also rebounded from a big loss and ended on the day.
Treasury yields are rising and the market expects the Fed to raise rates in March.
High interest rates are squeezing NASDAQ, which is down 16% from the record, Fix The territory, or 10% reduction.
You may be wondering how the Federal Reserve’s rate hike will affect Nasdaq’s tech stocks.
Another good question, money mover.
Now, the reason investors are wary of investing in tech stocks when there is a threat of rising interest rates is that much of the cash flow to tech companies will be realized in the future, not now.
Or, as Axios reported, “Technology stocks More vulnerable to fluctuations in interest rates This is because the price-earnings ratio is high and you usually pay very little by the method of dividends.
Big Tech’s growing market weights in indexes like S & P have tied the fate of the market to these rate-sensitive giants. (Apple, Alphabet, Microsoft, and Tesla generated more than 25% of the total returns earned by stock market investors last year.)
The artistic term that describes such sensitivity to interest rates is “duration.”
The period is expressed in years. Theoretically, it depends on how many years the investor pays a dividend to recover the investment. “
So tighten your seatbelt tech investor … it will be a bumpy vehicle.
What In Tarnation Is Going On In The Stock Market? Source link What In Tarnation Is Going On In The Stock Market?