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Tech Stocks
Tech stocks have found a home in the global stock market. Investors have seen bigger and better opportunities over the last few decades as many technology stocks have helped shape the face of what we know as today’s stock market. Some ETF’s including the S&P 500’s SPY and the NASDAQ QQQ are weighted heavily in technology stocks and cutting edge tech companies. If some of the tech stocks to buy in 2019 come up as familiar, that’s most likely because they were among some of the hardest hit tech stocks of 2018. At the tail end of the year, the tech sector was hit hard, but in 2019, many of these tech market laggards became tech stock leaders that helped rebound the market.
The past decade’s bull market has reaped handsome rewards for investors, and investors in tech stocks have seen some of the most significant returns. Within the tech industry, low-interest rates over the last 10 years have particularly favored high-growth names. When it comes to the best tech stocks, investors need to take notice of several things.
Similar to other sectors, there is much more volatility. That is because the market loves progress. New approvals from governing bodies like the Federal Trade Commission or The Federal Communications Commission could send tech stocks soaring. You also have to consider things like tech stocks reporting earnings. A positive earnings report that beats analyst estimates can have a considerable impact on the future potential of a technology company. Many of the top tech stocks to watch have a strong pipeline of product offerings they are working on. In the case of companies like Amazon, they may also have a strong pipeline of mergers and acquisitions within the tech sector that could add even more value to specific companies.
Global relations also carry weight on certain tech stocks. The issues that arose from trade disputes between the United States and China were a risk for many tech investors during the latter part of 2018. Just as with many of the other stock market sectors, it is essential for investors to be well aware of their surroundings, future government moves, pending earnings reports, and other key events that could become a positive or negative catalyst to determine if it’s time to buy tech stocks.