Skeptics have long made a sport of predicting that the decade-long rally in technology stocks was destined to reverse. At the halfway point of 2022, it seems like this is the year when they will be proven right. The benchmark, which gets half its value from tech, ended down 9% for the month of June, and sank more than 20% over the second quarter. It is on track for its biggest calendar-year decline ever.
business. “A lot of the names we’ve seen outperform this year have low variance in their earnings, good cash flow, they pay dividends, and they’re relatively stable businesses.” ‘Light at the end of the tunnel’ Bulls hold out hope that this year’s market plunge will bottom out as investors embrace the technology industry’s long-term growth potential and cheaper valuations. The Nasdaq 100 is now trading at about 19.