When is the best time to buy high tech??
A.I. is no doubt is and
will continue to be a transformational technology, however animals spirits of
investors has not changed since the dawn of markets. These stocks have now been bid up so high in
price in order to maintain a justification for their respective price to
earnings multiple, growth will have to be astronomical.
During the 1990's these
high tech stocks were all the rage the NASDAQ peak (March 2000) at 5,048 and
then crashed bottoming out on October 9, 2002 at 1,139 for a 77% decline! From the year 2000 peak to the next peak (after
the crash) in the year 2015!
Today (4-14-2025) the
NASDAQ and especially any A.I. type company their shares have been pushed to
the moon requiring a growth rate never seen in world history. This will be no different than the high tech
crash of the early 2000's how low is anyone's guess. I will say this it will be greater than 60% I
can only guess; 60% to 85%.
Once they crack the 60% barrier then you can begin dollar cost averaging with VALUATIONS far more in line with the real aspects of growth. Their growth will be phenomenal. Buying at favorable valuations your dollar growth will be significantly above average if A.I. is truly a revolution.
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