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As everybody knows, it’s all over for tech. Value is the new growth and inflation is the harpoon that has burst the market bubble for a generation. So when you are mooching about in the rubble of great tech companies whose stocks are down 60% or more from their highs, you won’t want to buy them, right? Because those highs are never coming back again. Like, ever. It’s just crazy talk to say they might. Seriously, this was true in April
. And it’s still true now. Sheesh.
Is the Eeyore contingent right? Maybe. But we have to tell you that in the decades we’ve been investing in tech, every time a pullback sets in, doomsayers fill the airwaves with tales of fear and woe. And in the modern era not just the airwaves but also Twitter, StockTwits and any other stock boards you can think of. The message is always the same. If you invested in these high growth names that just fell, you were dumb and deserved it. Of course company X isn’t worth Y times sales. You idiot! is the implication. How could you have paid that!!
Now we aren’t sure how many Great Comebacks tech has to make to do away with these Eeyore types but we have to tell you that we are very confident that growth will come roaring back into fashion in the not too distant future. In literally every single prior high, if you zoom out far enough and look in the rear view mirror, that former high - be it 1999, 2007, 2018 … they all now look paltry for the best names. So if you bought the best names at that February 2021 high, there’s a very good chance it works out just fine if you’re patient.
In addition, if you have a few bucks to hand and you want to put some of them to work in names that have been handed a thorough beating by the market lately, here’s two ideas for you. We’ll keep them brief. They’re excerpts from ideas we’ve shared in our pay services recently. Members of those services got the full story at the time. But even though time has passed, we believe these names remain compelling buys at the present time.