We need to take a look at and understand what is happening to the high growth tech stocks

It was another rough day on Wall Street with markets tanking across the board, and the Nasdaq down over 2%. We need to take a look at and understand what is happening to the high growth tech stocks, especially the large caps. Inflation fears have been taking a toll on all of the high growth stocks for some time, and now the large caps like Apple, Nvidia and Netflix are getting hit hard. It is important to note that the long term thesis of these companies is still very much intact. If you have had these in your portfolio for a while, it is perfectly fine to let them ride if you don't want to take the tax hit this year. They are likely to go lower, however. But in the long term, they will be just fine. 


For current opportunities, Healthcare, Oil and Financials are all great buys at these levels. UnitedHealth Group ($UNH) typically beats earnings and reports later this week. Chevron ($CVX) looks good here, and does oilfield servicer Halliburton ($HAL) and oil exploration company Devon Energy ($DVN). The price of oil dropped, temporarily taking these stocks down a bit, but oil's drop is due to Covid lockdowns in China and the release of oil from the Strategic Reserve. The Covid lockdowns are temporary and the oil from the reserve will get put back, oil is on its way back up. For financials, Wells Fargo ($WFC) and Morgan Stanley ($MS) are great buys here, and to a lesser degree JP Morgan (JPM), as the premium price is already built into perennial best in class bank.

There is likely to be some volatility in the markets for the next few weeks as more and more inflation data come on line. Expect some nice sized pops whenever we get a Not As Bad As Feared (NABAF) number, and use that opportunity to rebalance your portfolio, as the gains will be short lived. 
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- The Stock Region Team

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