Tech stocks are driving the market but will this rally last?
- 20 June 2023
- Posted by: Federica Montella
- Categories: eToro CopyTrader, Investing
The Nasdaq Composite is booming: why?
The US heavy tech index, Nasdaq, has increased for the past eight consecutive weeks.
The reason behind the recent gains is that investors are buying tech stocks driven by their enthusiasm for Artificial intelligence, in fact, the most bought stocks in recent days are the ones that have invested in AI.
I am talking about the following big companies: Apple, Tesla, Nvidia, Advanced Micro Devices, and Meta.
At this point, the question is: does the recent rally have more space to go up or not?
Investors are divided into two categories, some believe that the markets have still room to go up and some investors, instead, are sceptical due to the actual economic situation.
Investors that believe in more gains are betting on the fact that the Federal Reserve will not hike the interest rates anymore this year, even though that is not what Jerome Powell said during the last press conference.
The markets will be heavily impacted if the Federal Reserve will decide to increase the interest rates again next month, after June’s pause.
Investors who doubt that the recent rally can last longer are looking at the past years when the markets have crashed in 1999 when the dot.com bubble exploded.
Artificial Intelligence is going to affect everyone’s life in the near future but, at this time, it is not easy to identify which one of the actual blue-chip companies will be able still be profitable in the long term.
Portfolio update
I remain neutral and cautious about the stock market, especially now that the investor’s sentiment is extreme greed.
I hold long and short stock positions and aim to profit regardless of the market direction.
If you are already copying my portfolio, please keep the copy open.
If you are thinking of copying me, now could be the right time, if you can invest for the long term (years).
Remember to copy the open trades to optimize the copy.
Remember to set the stop loss on the copy at the minimum level, so you don’t get stopped if there is a correction.
Thank you, everyone. Have a nice day!
Steps to follow to copy my portfolio automatically:
1. Create an eToro account here: https://federicamontella.com/go/etoro/
2. Verify your account and make a deposit of at least 200 USD (you can deposit in any currency, like GBP and EUR)
3. Go to my profile page: https://federicamontella.com/go/etoro-passionforprofit/
4. Start the copy (copy open trades and set the lowest stop loss possible, to allow some movement)
5. Enjoy, it’s all automatic. You will make passive income 24/7
Let me know if you have any questions.
Federica Montella
eToro Popular Investor
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