lechatnoir
The Invesco QQQ Trust ETF (NASDAQ:QQQ) has had a strong year with gains of around 25% extending the rally that has added to large gains from a 2023 low. I believe the market is now in complacency mode and there is
Investors Should Position For A Correction In Tech Stocks
Summary
- I believe the market is in complacency mode, with the potential for a sharp correction, as evidenced by the AI-driven rally showing cracks in the semiconductor sector.
- Investors are becoming overly greedy, as seen in record ETF inflows and stock buybacks, which could exacerbate downside risks during a market correction.
- Geopolitical tensions and Trump's tariff agenda pose significant risks, potentially leading to a Black Swan event that could disrupt market stability.
- Despite some analysts predicting moderate economic growth in 2025, I believe investors should be fearful, not greedy, due to high valuations and underlying market vulnerabilities.
I am an active trader in stocks, FX, crypto, and commodities with over 15 years of market experience. I hold a master's degree in finance and mix microeconomic studies of company financials with a big-picture macroeconomic view.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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