Morning Report Friday 11 April 2014
The Tech sell off in America accelerates, am I wrong on the US?
The obvious and accurate answer is potentially. I am considering two scenarios for the NASDAQ (tech stocks):
The NASDAQ 6.9% / 259 points correction is very close to completion and fresh 2014 highs should follow – still preferred scenario.
The NASDAQ is now likely to correct closer to 400 points, another 150 points / 4.3%.
While point 1 is still my preferred scenario, it’s a lot closer to 50-50 than before. My concerns to further weakness from US indices increases when I look at the Dow and S&P500. As long as investors buy quality stocks, making a profit and paying a dividend, pullbacks can be exciting, BUT if you’re holding “speculative” stocks that have never made a profit it gets scary…a lesson here.
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