Business

“This is a generation’s buying opportunity!”

  • Nasdaq-100 – WKN: A0AE1X – ISIN: US6311011026 – Price: 11,177.38 Pkt (Nasdaq)

Equity markets have collapsed in the past few weeks and months. Inflation at the highest level in decades, the prospect of sharply rising interest rates and fears of a recession have caused prices to fall sharply. High-growth technology stocks, in particular, are suffering from the changing environment of high inflation and rising interest rates.

The Nasdaq 100 Index, which is dominated by major US tech stocks, has now lost around 33% from its all-time high in November 2021, and the S&P 500 at market level is around 23% below its all-time high reached at the beginning of January.

Nasdaq-100 chart

But the drop in price could now represent the entry opportunity for a generation, two successful investors and fund managers said Friday. The recent price drop offers long-term investors “a great one-generation opportunity” to buy shares in high-growth companies at a relatively low price, Sylvia Jablonski, head of Defiance ETFs, told US financial broadcaster CNBC. . Jablonski was specifically referring to big tech stocks like Meta, Amazon, Apple, Alphabet, and Nvidia.

But investors looking to enter now should have a time horizon of at least a year or two, Jablonski said. In the short term, volatility will remain high and it is not certain that the market has yet touched the minimum. In any case, there has already been enough “carnage” to make the current level “quite interesting” for entry. “I agree with the purchase here. I definitely agree with the purchase of the FAANGs,” said Jablonski. FAANG stands for Facebook (meta), Amazon, Apple, Nettflix and Google (alphabetical).

Billionaire and fund manager Ron Baron had previously taken a similar position to Jablonski (who is not related to the author of this article, despite having the same surname). Baron said in an email to CNBC on Friday that the recent price drop was a “Huge monstrous” buying opportunity. to represent. “This is the GREAT BUYING OPPORTUNITY of a generation”, Ron Baron wrote in the email, which Jablonski also referred to. The situation today is comparable to that of the 1980s, when the US Federal Reserve also attempted to control inflation with aggressive measures, according to Ron Baron.

However, other investors appear to view the situation differently than Jablonski and Baron. The world’s largest wealth manager BlackRock pointed out earlier in the week that it is still too early to start. Meanwhile, the world’s largest hedge fund, Bridgewater Associates, announced this week established multi-billion dollar short positions in European stocks, including 10 DAX stocks.

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Disclosure of Potential Conflicts of Interest: The author is invested in the following underlying securities or assets discussed at the time of this comment’s publication: Nasdaq-100 (long)

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