The Nasdaq fluctuated sharply last week after mass selloffs of FAAMG stocks – Facebook, Apple, Amazon, Microsoft, and Alphabet (Google) – triggered after their prices rose in a range of 22 to 84 per cent.
The selloffs prompted investors to ask whether US tech stocks were worth purchasing at their currently high prices.
Krungthai Asset Management (KTAM) provided one answer, declaring that the stocks still had potential for strong growth for long-term trade or holding. Accordingly, KTAM advised investors to prioritise future opportunity over current price when making decisions on the stocks. It also recommended that they avoid selling when the market fluctuates and instead adopt a long-term strategy for tech investment.
Meanwhile, SCB Asset Management (SCBAM) said the US Federal Reserve’s liquidity injections and advances towards a Covid-19 vaccine will support the Nasdaq Composite.
SCBAM chief financial officer Nunmanus Piamthipmanus explained that tech stocks had risen during the Covid-19 “new normal” after investors bet on cloud technology and e-commerce businesses. She advised investors to buy when Nasdaq stock prices are down.