3 Stocks I'm Buying During a Tech Stock Correction
It hasn't been easy for technology stock investors this year. The Nasdaq Composite index has fallen into a bear market, declining 31% year to date, taking the share prices and valuations of growth stocks to levels not seen in a while. The highest inflation in the U.S. in four decades combined with sharp hikes in the federal funds rate by the Federal Reserve has caused this swoon. We are now witnessing a sharp correction as higher rates cause growth stock valuations to plunge, making it more expensive for companies to take on debt.
I choose to see corrections as a great way to buy into new companies cheaply, or to increase my shareholding in existing positions. There's no better time to buy strong, well-run companies than a bear market, but the caveat is that you must be prepared to hold them over the long term. These businesses can latch on to tailwinds and are strong in their respective industries, thus making them perfect for buying and holding through volatility.
Here are three stocks that are good buys during the current correction.
Source Fool.com
