Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Tech correction

Stocks and Shares ISA , Choosing funds for ISA's, risk factors for funds etc
Investment strategy discussions not dealt with elsewhere.
Adamski
Lemon Quarter
Posts: 1075
Joined: July 13th, 2020, 1:39 pm
Has thanked: 1465 times
Been thanked: 553 times

Tech correction

#393534

Postby Adamski » March 8th, 2021, 9:45 am

Not sure if we're technically in a market correction territory but for those holding US and China tech stocks, there's been a big sell-off.

How do you feel about it? And do you plan to change strategy? Is this paring back valuations of high flyers? Or something bigger?

If you've got a diversified balanced portfolio or UK HYP, this time it's lucky you :lol:

Adamski
Lemon Quarter
Posts: 1075
Joined: July 13th, 2020, 1:39 pm
Has thanked: 1465 times
Been thanked: 553 times

Re: Tech correction

#393537

Postby Adamski » March 8th, 2021, 9:47 am

Answering my own questions. I feel irritated by it, but plan to stick with same strategy. I think this is neither a bull or bear market, but more of a bunny. Using this analogy hoping up and down but going sideways. Perhaps I'll check my portfolio in another few weeks :roll:

bluedonkey
Lemon Quarter
Posts: 1789
Joined: November 13th, 2016, 3:41 pm
Has thanked: 1389 times
Been thanked: 652 times

Re: Tech correction

#393546

Postby bluedonkey » March 8th, 2021, 10:13 am

Possible interpretation: the market had become two-speed, with techs on very high valuations and the rest of the market on much lower valuations. The elastic between these two could only stretch so far before the two parts of the market were pulled back closer together. So: tech valuations come down somewhat, rest of the market goes up somewhat.

Others could express the thought much more intelligently, but you get the idea. Markets eventually arbitrage away differences.

vagrantbrain
Lemon Slice
Posts: 316
Joined: November 17th, 2016, 7:12 pm
Has thanked: 112 times
Been thanked: 159 times

Re: Tech correction

#393566

Postby vagrantbrain » March 8th, 2021, 10:57 am

ATT and SMT make up a sizeable chunk of my portfolio so i've noticed the drop. On the other hand I think some of the recent tech stocks have been vastly overvalued and i'm still up something like 70%+ on these for the last year so cant have too many complaints. I'm sure it'll be noise in the long term.

frunk
Posts: 2
Joined: March 8th, 2021, 11:21 am
Been thanked: 1 time

Re: Tech correction

#393574

Postby frunk » March 8th, 2021, 11:27 am

Darn, I bought the SMT cool aid close to its ATH. Nursing a sizeable 4 figure loss now, the decision is to sell and take the hit or ride it out. Looks like the stock has some support around 950, but it could just as easily go lower. I think I need to stick with it, but I think I am in for the long term now a few years at least. Stock recovered a little to 970, so maybe we are at the bottom of the rout?

tikunetih
Lemon Slice
Posts: 429
Joined: December 14th, 2018, 10:30 am
Has thanked: 296 times
Been thanked: 407 times

Re: Tech correction

#393580

Postby tikunetih » March 8th, 2021, 11:35 am

FWIW a few timeless quotes never go amiss...

Humphrey Neill (author "Art of Contrary Thinking") writing in the 1940s/50s:
"Do not confuse brains with a bull market"

&

"When everybody thinks alike, everyone is likely to be wrong"


Helen Meisler (trader), 2016:
"Nothing like price to change sentiment"


I trade little nowadays, but still like to lean against sentiment from time to time. So I cut risk in January (after adding it last April) see here: viewtopic.php?p=375813#p375813

...and have used this recent sell-off to begin buying a new long-term position* funded from the cash raised a couple of months back when sentiment appeared uniform. NB this isn't "buying the dip" in pre-revenue speculative guff or tech stuff on sky-high multiples for whom the future planets must perfectly align, but instead highly profitable / well-stewarded / proven and reasonably priced, yet caught up in the down-draft. Will the timing of these purchases be "perfect"? Nope. Will I be happy in 10 years having bought at the prices I'm paying today? That's the goal. ;)

*Only tangentially tech-related

mark88man
2 Lemon pips
Posts: 234
Joined: January 28th, 2017, 11:58 am
Has thanked: 315 times
Been thanked: 87 times

Re: Tech correction

#393588

Postby mark88man » March 8th, 2021, 11:42 am

frunk wrote:Darn, I bought the SMT cool aid close to its ATH. Nursing a sizeable 4 figure loss now, the decision is to sell and take the hit or ride it out. Looks like the stock has some support around 950, but it could just as easily go lower. I think I need to stick with it, but I think I am in for the long term now a few years at least. Stock recovered a little to 970, so maybe we are at the bottom of the rout?

Me too a bit - I am trying to move away from individual shares but fancied the racier exposure so I too bought SMT.

I'm holding tight although not only do I have an actual 15%loss at the moment I also have the opportunity loss that my LLOY shares which I top sliced to release funds have done very nicely. So overall up but as you say a good 4 figure delta to the bad.

I see LLOY as part of the value bunny that is means reverting, so when that has seen the good news from the lockdown ending (I think it has another 10-20p to go) I will sell that and SMT will still be on the list - and hopefully not run ahead of itself too much

simoan
Lemon Quarter
Posts: 2090
Joined: November 5th, 2016, 9:37 am
Has thanked: 462 times
Been thanked: 1456 times

Re: Tech correction

#393599

Postby simoan » March 8th, 2021, 12:15 pm

mark88man wrote:
frunk wrote:Darn, I bought the SMT cool aid close to its ATH. Nursing a sizeable 4 figure loss now, the decision is to sell and take the hit or ride it out. Looks like the stock has some support around 950, but it could just as easily go lower. I think I need to stick with it, but I think I am in for the long term now a few years at least. Stock recovered a little to 970, so maybe we are at the bottom of the rout?

Me too a bit - I am trying to move away from individual shares but fancied the racier exposure so I too bought SMT.

I'm holding tight although not only do I have an actual 15%loss at the moment I also have the opportunity loss that my LLOY shares which I top sliced to release funds have done very nicely. So overall up but as you say a good 4 figure delta to the bad.

I see LLOY as part of the value bunny that is means reverting, so when that has seen the good news from the lockdown ending (I think it has another 10-20p to go) I will sell that and SMT will still be on the list - and hopefully not run ahead of itself too much

If there's been a tech correction then I've missed it. YTD performance in my US tech holdings:

Intel: +19.8%
Cisco Systems: +4.6%
Microsoft: +5.5%
Facebook: -2.7%
Apple: -8%

Nothing to get stressed about IMHO. Of course, if you hold loads of the pre-revenue type tech rubbish, I suspect it still has much further to fall.

All the best, Si

NotSure
Lemon Slice
Posts: 916
Joined: February 5th, 2021, 4:45 pm
Has thanked: 679 times
Been thanked: 314 times

Re: Tech correction

#393603

Postby NotSure » March 8th, 2021, 12:36 pm

frunk wrote:Looks like the stock has some support around 950, but it could just as easily go lower.


Do things like 'technical support' apply to ITs? While discounts/premiums can change (a bit), surely the NAV at least is subject to forces beyond the buyers and sellers of an IT?

jonesa1
Lemon Slice
Posts: 263
Joined: May 27th, 2019, 9:47 am
Has thanked: 103 times
Been thanked: 142 times

Re: Tech correction

#393633

Postby jonesa1 » March 8th, 2021, 1:49 pm

NotSure wrote:While discounts/premiums can change (a bit), surely the NAV at least is subject to forces beyond the buyers and sellers of an IT?


SMT's discount has widened more than a bit, BG are quoting an 11.3% discount for Friday's price. AIC are currently showing 11.2%. Pretty sure it was above zero at the start of the year. That could mean the price will recover fairy quickly when the run stops, but might mean big reductions in the value of the unlisted assets are anticipated when next revalued.

jonesa1
Lemon Slice
Posts: 263
Joined: May 27th, 2019, 9:47 am
Has thanked: 103 times
Been thanked: 142 times

Re: Tech correction

#393637

Postby jonesa1 » March 8th, 2021, 2:05 pm

Just noticed that City Wire are suggesting the discount is now 17%

77ss
Lemon Quarter
Posts: 1271
Joined: November 4th, 2016, 10:42 am
Has thanked: 233 times
Been thanked: 414 times

Re: Tech correction

#393645

Postby 77ss » March 8th, 2021, 2:32 pm

Adamski wrote:Not sure if we're technically in a market correction territory but for those holding US and China tech stocks, there's been a big sell-off.

How do you feel about it? And do you plan to change strategy? Is this paring back valuations of high flyers? Or something bigger?

If you've got a diversified balanced portfolio or UK HYP, this time it's lucky you :lol:


Well, I won't say that I am happy about the falls, but 'masterly inactivity' is my plan. So I have some risky holdings. I knew that, and rely upon diversification to shield me from the worst.

Much depends on when one bought these things.

Shares showing a significant loss for me recently (GE 15% YTD) are ATT, EWI, JCGI, PHI (actually only 14.85%).

I am still comfortably ahead on all 4. Partly because I have held them for long enough and partly because I top-slice on highs.

Little worse than ULVR in fact.

Hariseldon58
Lemon Slice
Posts: 834
Joined: November 4th, 2016, 9:42 pm
Has thanked: 124 times
Been thanked: 513 times

Re: Tech correction

#393685

Postby Hariseldon58 » March 8th, 2021, 5:22 pm

frunk wrote:Darn, I bought the SMT cool aid close to its ATH. Nursing a sizeable 4 figure loss now, the decision is to sell and take the hit or ride it out. Looks like the stock has some support around 950, but it could just as easily go lower. I think I need to stick with it, but I think I am in for the long term now a few years at least. Stock recovered a little to 970, so maybe we are at the bottom of the rout?



If you bought at £14 plus shouldn't you be delighted to buy some more at below £10 ?

If I hold something with a 5 to 10 year view and the price falls I buy some more, given the underlying facts have not changed.

(I am aware of the threat of higher interest rates because business conditions look unexpectedly favourable...the latter is more important than the former imho, given the guys who control the money printing are not keen on higher interest rates because they owe a lot of money)

I just look to buy at least 5% below the lowest price I have paid, ditto Edinburgh Worldwide..

Volatile price movements are your friend.

Avantegarde
Lemon Slice
Posts: 269
Joined: January 29th, 2018, 10:13 pm
Been thanked: 159 times

Re: Tech correction

#393699

Postby Avantegarde » March 8th, 2021, 5:47 pm

I have offered a few musings on this over at the Portfolio Management and Review sub-forum: viewtopic.php?f=56&p=393684#p393684

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Tech correction

#393701

Postby Dod101 » March 8th, 2021, 5:51 pm

NotSure wrote:
frunk wrote:Looks like the stock has some support around 950, but it could just as easily go lower.


Do things like 'technical support' apply to ITs? While discounts/premiums can change (a bit), surely the NAV at least is subject to forces beyond the buyers and sellers of an IT?


See my post earlier today.

Dod

TUK020
Lemon Quarter
Posts: 2039
Joined: November 5th, 2016, 7:41 am
Has thanked: 762 times
Been thanked: 1175 times

Re: Tech correction

#393704

Postby TUK020 » March 8th, 2021, 5:56 pm

tikunetih wrote:...and have used this recent sell-off to begin buying a new long-term position*

*Only tangentially tech-related


OK, so now you have got me curious.........
What have you got stuck into?
tuk020

Adamski
Lemon Quarter
Posts: 1075
Joined: July 13th, 2020, 1:39 pm
Has thanked: 1465 times
Been thanked: 553 times

Re: Tech correction

#409324

Postby Adamski » May 4th, 2021, 5:39 pm

Some pull back in the Nasdaq today (2.64%). Do you think this is a hiccup, a continuation of the rotation of growth to value, or start of something else?

EthicsGradient
Lemon Slice
Posts: 570
Joined: March 1st, 2019, 11:33 am
Has thanked: 33 times
Been thanked: 231 times

Re: Tech correction

#409384

Postby EthicsGradient » May 4th, 2021, 8:23 pm

Thought to be a reaction to the possibility of higher US interest rates: https://www.nasdaq.com/articles/u.s.-st ... 2021-05-04

Adamski
Lemon Quarter
Posts: 1075
Joined: July 13th, 2020, 1:39 pm
Has thanked: 1465 times
Been thanked: 553 times

Re: Tech correction

#410956

Postby Adamski » May 11th, 2021, 8:48 am

Definately in tech correction territory today. Smt down 6.2% yesterday, 4.3% today.

As well as inflation worries, also got sell off of China tech with anti trust crackdown. Looks like tech/growth not a happy place this year so far.

CryptoPlankton
Lemon Slice
Posts: 786
Joined: November 4th, 2016, 12:12 pm
Has thanked: 1544 times
Been thanked: 873 times

Re: Tech correction

#410959

Postby CryptoPlankton » May 11th, 2021, 9:01 am

Adamski wrote:Definately in tech correction territory today. Smt down 6.2% yesterday, 4.3% today.


Somebody call AC12, I've got a lead for them... :)


Return to “Investment Strategies”

Who is online

Users browsing this forum: No registered users and 15 guests