OT- what's up with all the Tech Stocks

[Bulldogg31]

Apologies to those who don't follow or care, but there are some knowledgeable folks on here who might have insight.

 

[Wizard of bulldogery]

i read something today that said the new legislation was gonna benefit that sector the least. valuations are really high too basically everyone is selling tech and buying financials because they seem to benefit the most with lower taxes, deregulation, and hopes to lower the capital requirements. I'm just a cog in a wheel i'm not a analyst nor do I have a CFA. i do sit on a trade desk tho and consume copious amounts of information

 

[karlchilders.sixpack]

Besides all else

They have been on a hell of a run...Nothing runs forever.

Check out the year to date chart on XLK


https://finance.yahoo.com/quote/XLK?p=XLK

 

[TheStateUofMS]

Technology stocks will benefit the least from tax reform. They already have the lowest effective tax rate. This is a rotation into names that will benefit the most. Take for instance airlines: their tax rates are generally in the high 30% range.

Tech is fine. It's been on a great run. Profits being taken and moving into some other sectors right now. I'm just about ready to add to some of my tech names. Volume wasn't crazy. This is not a panic. This is a rotation. Some use a rule of thumb that rotations last 3 days.

 

[TheStateUofMS]

Small cap stocks would likely benefit the most from tax reform.

It's another reason to have some diversification if you're not one who is nimble enough to be in and out of the market.

 

[Leeshouldveflanked]

Blue Horseshoe likes Blue Star.

 

[CochiseCowbell]

Russell is bowing out, leaving Tech to be picked up by either Nike or Adidas. Under Armour is struggling.**

 

[TheStateUofMS]

Very well done, sir.

 

[She Mate Me]

This from an old timer. They will have another 50% fall from whatever highs they finally set. It's the nature of the Boom / Bust markets the global central banks have created over decades.

 

[Bulldogg31]

Thanks guys good stuff

 

[ShrubDog]

Nothing runs for ever but bitcoin has been on a heater for a year skrong.