The semiconductor selloff is a wake up call for investors.  Option B: Higher yields require further valuation adjustment is the absolute core driver.  You cannot look at the tech stocks valuation in a vacuum.

With the US 30 year Treasury Bond yield blasting to a 19 year high of 5.33%, paying extreme premium for future unproven tech earnings does not make sense.  Higher yields from the US bonds is like a vacuum cleaner, sucking the speculative liquidity out of high beta tech stocks.

The selloff isn't happening because AI demand died.  It is happening because macro physics are forcing a standard valuation reset across the entire sector.

While Option B tells you why the market is dropping, Option E is the ultimate strategy for turning that red ink into long term wealth.

Buy the storage dip through dollar cost averaging using Tiger Brokers Auto Invest feature.  This removes the pressure of timing the bottom.  Let time do the heavy lifting.

@Tiger_comments @Tiger_SG @TigerStars

# Nvidia Drops 2.3% a Week Before Earnings — 50% Upside or Bubble?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

  • Top
  • Latest
empty
No comments yet