A closer look at tech stocks
2020 has been a rough year for the global economy. With endless amounts of businesses closing down, job losses and lockdowns, we were hardly able to know which way the markets would go.
With the above being said, there is always a potential opportunity when it comes to investing in the global markets.
Read the financial newsYou won't know what's happening with certain asset groups unless you educate yourself. Find reputable financial websites where news articles and live updates are released daily.
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Trading decisions should come from you, so once you are confident that you have found the instrument(s) you want to invest in, check the charting history, test your strategies and make a trading plan.
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The forex market is the most liquid market in the world but don't underestimate the stock market. Whilst many markets crashed during March this year, many stock prices made considerable gains so if you were one of the lucky ones to predict this, then you may have potential earnings.
During the months of lockdown, we saw a huge decline in stock prices due to many companies being unable to operate and function in a 'normal' way. Investors may have been shaken by this but, as things started to return back to 'normality', stock prices slowly started to repair. That was one extreme; the other was the stocks which surpassed expectations and made huge increases.
Certain businesses were already established and fully functionable online, mainly tech stocks, so instead of dropping they actually made considerable gains. Online shopping, working and communication is where we all needed to turn to as the outside world was at the time inaccessible, so the companies that functioned online were the stocks to grow.
Let's see some of the best tech stocks: As we know, many of the most valuable companies in the world are famous tech brands. If you're not familiar with them we have a few suggestions to keep your eye on in the upcoming months.
Amazon (NASDAQ:AMZN) Leading online retailer and provider of cloud computing.
Stock Price: $3,430.58*
YTD: +86.04%
Apple (NASDAQ:AAPL)Stock Price: $123.46*
YTD: +86.04%
Intel (NASDAQ:INTC)Stock Price: $53.91*
YTD: -9.92%
Cisco Systems (NASDAQ:CSCO)Stock Price: $40.21*
YTD: -16.16%
Netflix (NASDAQ:NFLX)Stock Price: $544.62*
YTD: +68.32%
Facebook (NASDAQ:FB)Stock Price: $274.69*
YTD: +33.83%
Alphabet (NASDAQ:GOOGL)Stock Price: $1,580.92*
YTD: +18.03%
*Prices and YTD % changes as of 13.10.20 taken from https://www.marketwatch.com/
Although not all of the top-tech stocks have a positive gain YTD (year-to-date), the odds are that they will bounce back over time. The economic environment has been extremely uncertain around the globe this year with no guarantee of a full recovery yet but what we can be optimistic about, is the fact that tech stocks will become of more interest to more investors as they now hold a certain 'safety' stigma. Working-from-home means higher demand for computing systems, cloud services, conference call systems, networking and leisure services, so with that in mind, is it time to invest in tech?
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Sources:
https://www.investopedia.com/articles/investing/082614/how-stock-market-works.asp
https://fortune.com/2020/07/01/best-stocks-to-buy-2020-coronavirus-markets-economy/
https://www.fool.com/investing/stock-market/types-of-stocks/growth-stocks/
https://www.fool.com/investing/2020/08/13/a-look-at-4-of-the-best-performing-tech-stocks-of/
https://www.investopedia.com/top-tech-stocks-4581295
https://www.fool.com/investing/stock-market/market-sectors/information-technology/
https://www.marketwatch.com/
This article was submitted by ForexTB.
