And Boom Go Tech Stocks
The major indexes opened down across the board this morning.
But who cares… Overall, markets are surging right now.
Of course today’s financial headlines would have you think the world is about to implode. These two from MarketWatch read especially glum.
“If Stock Market Investors Missed January’s Surge, They’re out of Luck…”
“Think the Stock Market Will Rally Once a U.S.-China Trade Deal Is Struck — Think Again, Says One Wall Street Vet”
And Business Insider wrote yesterday, “A $2 trillion strategist is bracing for three years of pain for stocks.”
As you can see investor sentiment is still low after the drubbing folks took to end 2018. But as we say time and time again, your worst enemy is headline hype.
2019 Is Going to Be Great for Stocks
Stocks are on a tear since the so-called Santa Claus rally kicked off to close out December.
This includes all the major indexes, as you can see in their combined three-month chart below:
Even better is what this price action through January historically has meant for the markets long term.
My colleague and market expert Mike Burnick noted this in a report he released earlier this week.
According to Mike: “Since 1936, the stock market has finished the year with a gain 92% of the time when the stock market was up during January.”
I like those odds and you should too.
January was a record-breaking month for stocks as you can see in this zoomed-in chart of the major indexes from above:
But What About My Tech Plays?
While markets churn higher, tech stocks are once again leading the way. You can see this in the chart below that compares the Nasdaq 100 Tech Sector with the Dow and S&P 500:
Tech stocks are beating the pants off the Dow and S&P indexes right now.
And that’s even though many Nasdaq 100 stocks like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG), Micron (NASDAQ: MU) and Advanced Micro Devices (NASDAQ: AMD) are down today.
Year to date they are all payers. As you can see in the chart below:
And just like that… Boom go tech stocks.
The simplest way to profit off this surge is through ETFs. Three of my favorites you should consider include:
- First Trust NASDAQ 100 Tech Sector ETF (QTEC), up 13% YTD
- Vanguard Information Technology ETF (VGT), up 9% YTD
- Technology Select Sector SPDR Fund (XLK), up 8% YTD.
These ETFs spread your money across many of the best performing tech companies. They also minimize your risk.
Spreading your money across multiple positions means if one company in the ETF tanks but the others don’t, the larger part of your stake will be safe.
And as tech stocks continue to surge you’ll certainly want to consider grabbing a stake in the action with one of these funds.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily