The year 2020 will be written down in the history as the most challenging and tough year of the century. Nothing was easy this year and stocks also had a hard time. Stock markets across the world stumbled and economies dropped down to all time lows. Within this mayhem were the tech stocks as well. How did they perform and why the immediate future is not so promising? Let’s take view on the same.
STORY SO FAR
The tech stocks this year had a great time. The Nasdaq 100 index showed an advance of 43% this year. It was the highest number achieved by Nasdaq 100 in over a decade. The number looks good on an individual level but when compared with the S&P 500 Pure Value index, one is bond to say that tech stocks did not do great this year. The S&P 500 had an advance good advance of 16%. Do not be mistaken with the low number as experts are predicting that S&P 500 will have an advance of 46% in the next year.
With such a big growth prediction for S&P 500, the pressure on Nasdaq 100 is mounting high. Experts are saying that Nasdaq 100 will slum in the first quarter of the year and may pick up some pace by the end of the year but the growth will be nowhere near the value of this year. All of this is happening as in the post pandemic world, normal offline commerce will start growing again and this will surely put the tech stocks in the back foot.
What is your take on the same? Will you be willing to invest in the tech stocks or would prefer the others? Comment your opinions in the comment box.