Tech Stocks: The New Safe Haven?

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Midas Letter

The Digital Businesss Channel for Cannabis, Crypto and Technology Stocks.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

FAANG stocks and the largest technology stocks have dominated in a year of uncertainty (to put it lightly). Their consensus P/E ratios are forecast to be the highest in decades.

As the economy has been decimated due to the Coronavirus and company earnings estimates have been hit in correlation, the largest of tech companies have been the investments to make – so far.

With the following news coming out this week, will these tech names be the trades to make this week and beyond?

Tuesday – U.S. Manufacturing PMI: Markets could improve if the PMI expectation of 50.0 materializes.
Thursday – U.S. GDP: Analysts are braced for a sharp drop in Q1 GDP, with an estimate of -5.0%. To reflect the damage to the economy due to the Coronavirus, markets are preparing for a drop in U.S. Q1 GDP of -5.0%. Traders should be very careful if losses are larger than expected.
Also Thursday – U.S. Unemployment Claims: The consensus at this point in the COVID-19 timeline is another drop of 1.3 million.

Lastly, companies like Nike Inc (NYSE:NKE) are reporting earnings this week – which will provide the foundation and set the stage for how we can anticipate future earnings reports.

Watch the full interview to see how the expert roundtable are going to trade the news this week and their opinions on best sectors to trade in the short/long term.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.