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OffbeatOpinion: There's a darker message for investors in the tech sell-off

18:40  20 november  2018
18:40  20 november  2018 Source:   marketwatch.com

Sell-Off Becomes Roughest Since 2011 on Third Leg of Nasdaq Drop

Sell-Off Becomes Roughest Since 2011 on Third Leg of Nasdaq Drop Another beating in tech shares has thrust the correction that began last month into a league of its own versus past selloffs. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); The data is getting ugly. A gauge of 30-day turbulence in the Nasdaq 100 has tripled in five weeks, pushing it to the highest since 2011. Day-to-day swings are averaging 1.7 percent, half a percentage point more than in February.

And of course, there ’ s the persistent fear of a deeper trade war with China. But a lot of it comes from a new environment in which Big Tech is getting public The dominance of these tech giants, and the social consequences of their power, put them increasingly in the crosshairs of politicians from the left

Big Tech is facing the kind of scrutiny it hasn’t had since the Microsoft Monopoly era.

Not so long ago the fabulous FAANGs could do no wrong.

From July through October, the share prices of Facebook,Amazon, Apple, Netflix and Google parent Alphabet were hitting record after record, and the only thing investors disagreed about was how much further they could go.

But over the past few weeks, these stocks have been decimated: Facebook has plummeted by nearly 40% as of Monday’s close, Netflix has plunged 35%, and Amazon has declined by 26%, putting all three deep in bear markets. Two others, Apple and Alphabet, have lost nearly 20%, on the cusp of what’s generally defined as bear-market territory. In the last six weeks, the FAANGs combined have lost $728 billion in market value.

If You Own a Mutual Fund, You Could Face an Unexpected Tax Bill This Year

If You Own a Mutual Fund, You Could Face an Unexpected Tax Bill This Year Some mutual fund investors, including ones at fund giant Vanguard, could face an unexpected tax hit this year. Typically, mutual fund investors only have to worry about capital gains when the market is booming — not this time around. Despite the fact that the market is up only about 1% for 2018, investors in many funds could end up owing taxes on gains those funds realized by trading stocks or other securities throughout the year.

“Short term, unexpected weakness in the tech sector could have a significant impact on the global economy, adding to what already looks like a soggier Apple has been leading the charge lower for FAANG stocks as investors worry sales for the company’ s flagship product, the iPhone, will slow down.

"That's because there ' s no sea-change in this technology business. Not at all. This sell - off is all about the mechanics of the money management business," he said. The chaos in the tech sector will only unravel with time and lower prices, Cramer said. The group will only be able to recover when weaker

No doubt some of this was a long-overdue comeuppance for a group of stocks that were way overvalued. Some of it is part of a market correction and retreat from risk triggered by rising interest rates. And of course, there’s the persistent fear of a deeper trade war with China.

But a lot of it comes from a new environment in which Big Tech is getting public criticism in ways it hasn’t since the Microsoft Monopoly era. The dominance of these tech giants, and the social consequences of their power, put them increasingly in the cross hairs of politicians from the left and right. And the tech titans themselves, so often the subject of hero worship (like Elon Musk of Tesla, are now facing tougher scrutiny, too.

We are entering an era of growing public demand to rein in these companies, which already has hurt these stocks—and the broader market. Consider:

Dow set for a triple-digit loss at the open as tech stocks hit bear territory

Dow set for a triple-digit loss at the open as tech stocks hit bear territory U.S. stock index futures pointed to a lower open on Tuesday morning as tremors in tech stocks keep investors nervous. At around 4:10 a.m. ET, Dow futures were down 150 points, pointing to triple-digit losses of 131.44 at the open. S&P 500 and Nasdaq futures pointed to a negative open too. Stocks dropped sharply on Monday, with the Dow plunging 400 points, as the biggest and most popular technology stocks plunged. The popular "FAANG" trade made up of Facebook, Amazon, Apple, Netflix and Alphabet is now in a bear market with each member down more than 20 percent from their one-year highs.

This means putting yourself out there where investors are bound to find you, including a website, social networking sites, guest posts on established Finding an investor in a friend or family member isn't a hard sell because they already believe in you and are passionate about helping you succeed.

The recent sell - off in tech stocks suggests investors are thinking about growth differently. The returns of the S &P 500' s technology sector have more than doubled the benchmark index' s over the But that has recently switched amid a slew of news that has given investors worry about big tech companies.

• On Nov. 1, thousands of Google employees walked out over the company’s policies on sexual misconduct and harassment. That followed a New York Times report the company had paid Android founder Andy Rubin $90 million severance in 2014 after a female employee accused him of forcing her to have oral sex with him in a hotel room. Oh, no, nothing sleazy about that, folks.

Just months earlier, the Intercept reported the company was secretly building a censored search engine for China, code-named Dragonfly, that would block search terms having to do with human rights, democracy, religion, and all the other things the totalitarian Chinese regime hates and fears. Google’s main search engine has been shut out of China for a decade, and this apparently was the price of getting back in.

What ever happened to “Don’t be evil”? Funny you should ask: Google quietly removed it from its code of conduct in May.

Dow set for triple-digit gains at the open after global equity sell-off

Dow set for triple-digit gains at the open after global equity sell-off U.S. stock index futures were higher Wednesday morning, as traders prepared for some respite from the latest wave of global selling. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); At around 04:20 a.m. ET, Dow futures were 133 points higher, indicating a positive open of more than 114 points. Futures on the S&P and Nasdaq were also relatively upbeat Wednesday morning. U.S.

Tech stocks, favored for their earnings growth, are underperforming more-defensive utilities stocks. The weakened ratio of both sectors reflects a softening in investors ' growth outlook. The recent sell - off in tech stocks suggests investors are thinking about growth differently.

"Does ( the tech sell - off ) mean that value investing strategies are beginning to become more prevalent — banks and financials being A sell - off in Chinese tech stocks, meanwhile, has gained momentum amid investor worries that its communist government is backtracking on some economic policies.

• Amazon faced a storm of criticism for how it handled its recent multicity sweepstakes for its two new headquarters—one in Crystal City, Va., right outside the nation’s capital, the other in Long Island City in the New York City borough of Queens. Each will employ 25,000 people and Amazon will invest $2.5 billion in each facility over the next decade.

But politicians and community residents protested the massive tax breaks that state and local governments gave away to make the deal. Together they amounted to $2 billion, but New York was far more generous (or profligate), subsidizing $48,000 out of each projected $150,000-a-year new job.

Amazon also will get helipad permits, so CEO Jeff Bezos won’t get stuck in Beltway traffic—or, God forbid, the New York City subway. In exchange for all this, Amazon pledged $5 million, with matching funds from the city and state, for community “workforce development initiatives.” For me, that’s the equivalent of dropping a quarter in the tip jar at Starbucks. As the old New York expression goes, “we wuz robbed.”

• And then there’s Facebook. Earlier this year, when the Cambridge Analytica scandal revealed that the privacy of 50 million Facebook users had been violated, crisis-management expert Davia Temin told me it “threatens their core business model, it threatens their reputation.” Since then, things have gotten worse, culminating in a devastating New York Times investigative piece that said CEO Mark Zuckerberg and COO Sheryl Sandberg repeatedly ignored warning signs that Facebook’s vaunted network was being used to disrupt elections and spread hate-filled propaganda around the world.

Investors seek stability as they bail out of tech stocks

Investors seek stability as they bail out of tech stocks Since stocks began tumbling two months ago, investors haven't abandoned the market. 

Is the current market sell - off signaling a recession next year? A market correction (a drop of 10 percent or more) is often a leading indicator of recession six months or so down the road as investors sniff out a coming slowdown in consumer and business spending that would hurt corporate profits.

Q: Is there a way to parse that 70 million downtick between there being inventory in the supply Dark News. Lumentum plunged 33 percent on Monday after telling investors that a key client asked it This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

Instead of “leaning in,” Sandberg doubled down, hiring a bare-knuckles Republican opposition-research firm (she contributed over $500,000 to Democrats in 2016) to discredit critics in part by linking them (no doubt falsely) to liberal financier George Soros. She also enlisted the help of Senate Minority Leader Chuck Schumer (D-NY), the Times reported. But as The Wall Street Journal reported, Zuckerberg, who told colleagues Facebook is at war, blamed Sandberg for the whole mess, and she feared for her job.

Just what shareholders need: the two key people at each other’s throats while the company is in crisis. But it’s symptomatic of the new environment the FAANGs face.

When Fox News TV host Tucker Carlson agrees with Democratic Socialist Alexandria Ocasio-Cortez that New York’s deal with Amazon was a giveaway, it’s a sign change is coming. No wonder Apple’s CEO Tim Cook just said more regulation of technology companies is “inevitable”: As Bob Dylan wrote years ago, “you don’t need a weatherman to know which way the wind blows.”

Howard R. Gold is a MarketWatch columnist and founder and editor of GoldenEgg Investing, which offers exclusive market commentary and simple, low-cost, low-risk retirement investing plans. Follow him on Twitter @howardrgold.

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