The global stock markets assuredly took a significant hit when the Covid-19 virus pandemic was announced and the shutdown put into force. The downturn in the markets was actually one of the first major impacts. The markets have now rebounded nicely, only dropping from time to time when certain governmental or Federal Reserve Bank policies are introduced.
Commodities such as oil and the food supply also rippled, with the price of oil going down and the price of food slowly climbing. Even the tech stocks rode the general decline at first. However, the NASDAQ was one of the first markets to return to an inclined pattern after the fact, which is also where many of the tech stocks are listed. Even the stocks of lower-priced companies began an upward trend as well. And when we consider the concept that this is indeed the Information Age, it is safe to say that tech stocks are poised to do well for the foreseeable future.
Big Stocks Went Bigger
One of the trends that did occur during the first days of the pandemic was that many people lost when short selling their holdings. But, the real behemoths in the stock game continued to rise if not grow at a significantly higher rate. Amazon and Apple were clearly leading this group, rising to the point that owner Jeff Bezos of Amazon cashed in on a huge component of his Amazon holdings. Both stocks grew in unit value, and now it appears that Apple stock predictions show a continuing growth pattern for the iPhone company. According to a transcript from a Money Morning interview with Dave Zeiler, “There's a lot of investor interest in Apple right now – for a lot of reasons. It's got tons of cash, and a bulletproof balance sheet. It was a pioneer of the technology "ecosystem." It's an innovator.” Where the big dogs blaze the trail in tech stocks, the small dogs with very attractive price points and growth potential will follow when investors identify who they may be as the pandemic unfolds over the long run.
An Unexpected Gift
It is no secret that people have been glued to their computers and smartphones during the Covid 19 shutdown even more so than before, which was already at a pandemic level itself. People across the planet have become very dependent on technology for many of life's needs that can benefit from the convenience. With the shelter-in-place orders for so many states, digital communication was the primary mode of interaction for many. It has also delivered a need for other technological advances and new products as well, including proving to employers that video communication platforms like Zoom are very effective in allowing work associates to work from the comfort of their own living room. This ongoing understanding could well become an unexpected gift for those operating and investing in tech stocks with short-term growth potential being in the offing for many tech companies.
Whether you are a seasoned investor or just beginning the process of growing savings through the investment market, tech stocks are becoming an even more attractive rising star in all of the markets. But, just as in other niches of investment, it takes some working knowledge of leading indicators showing a reasonable expectation of growth for any particular company to be a prudent purchase. Historic information on a stock purchase opportunity is still encouraged and even required for many newbies. But it does appear that the tech stock investment game is set for a steady uptick in both the short and long-term investment cycles.