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I warned investors to prepare for a correction in technology stocks (NASDAQ:QQQ) back in late November. I followed that up with a timely short call on February 26, just ahead of a sharp drop of more
Technology Stocks Could Be Facing A Deeper Downturn
Summary
- After calling the recent market crash, I believe technology stocks remain at risk of a deeper correction, with market valuations near historic extremes and economic growth slowing.
- The Buffett Indicator signals a potential market bubble, and past reversals from these levels have led to major corrections of 50% or more.
- Key risks include unresolved U.S.-China trade tensions, inflation volatility, global conflicts, and excessive AI and cloud CAPEX amid weakening demand.
- I urge investors to diversify away from growth themes, as the next downturn could be more severe and retail buying may signal a bull trap.
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.
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