Tech Sell-Off: Where to Invest $5,000 for the Next 5 Years
Technology stocks have lost their bearings in the first month of 2022, as evident from the 18% decline in the NASDAQ-100 Technology Sector index.
Due to the Federal Reserve's hawkish stance that could lead to at least four quarter-point rate hikes this year, investors have pressed the panic button. Higher interest rates are bad news for technology stocks because investors are tempted to put their money into safer assets such as bonds or value stocks instead of richly valued companies.
However, the good part is that the sell-off in tech stocks has opened an opportunity for savvy investors to buy some fast-growing companies at attractive valuations. More importantly, these companies look destined for long-term growth because of the hot tech trends they can take advantage of. Let's see why putting $5,000 into these potential growth stocks could be a good idea amid the market correction.
Source Fool.com
