Technology Stocks Tumble — This Is How You Will Know When To Buy Them Again

Technology Stocks Tumble — This Is How You Will Know When To Buy Them Again

It's been a tough year for Big Tech, as you can see in the chart below, with Meta Platforms leading the way. Shares of Facebook's stake fell 26% on Oct. 27 and the decline reached 71% in 2022.

Many of the biggest tech companies have underperformed the S&P 500 during this year's broad bear market.

Believe it or not, the broader market is still trading high by some historical valuation metrics.

So how do you know if this big drop in a tech stock has gone too far? When is the right time to buy, in other words? Mark Hulbert examines the behavior of Wall Street analysts as they cut Meta estimates and valuations to see when the stock will rally.

Season of technological victories and disappointments

The chart above shows stock returns through 2022, dividends reinvested, for the FAANG group of stocks, including the Meta Platforms of Facebook, Apple, Amazon.com, Netflix and Google Holding Alphabet, and Microsoft and Tesla , renamed Microsoft. All but Apple have outperformed the S&P 500 this year, down 19%.

This week saw massive action for major tech stocks as quarterly financial results were released. Below is a selection of reports and analyses:

Two timely guides to the bond market

As the Federal Reserve works against inflation, interest rates are rising this year and bond prices have fallen. Yields have become so attractive that it's time to consider converting cash into bonds if income is one of your investment goals, or soon will be.

Here are two in-depth guides to different areas of the bond market:

Did you miss the Effects Maturation I? There is hope

The interest rate on US Treasury bonds (i-bonds) is 9.62%, but the deal expires on October 28, prompting interest that could flood TreasuryDirect.gov.

But you might be able to get a better deal next week.

RELATED: Maximum 401(k) Contributions Will Rise About 10% in 2023, But Boosting Your Retirement Investments Isn't Always a Good Idea

Wealth planning feature on your iPhone

The iPhone has a cool feature that allows the user to set an old contact. A similar feature is available for Android phones. They allow the survivor to access the phone in the event of the user's death. It can be a very useful wealth planning tool, says Beth Pinsker.

An activist pushing for change in LSD

Ciara Linnan and Steve Gilsey interview an activist investor driving change at MindMed, and its CEO responds. The New York-based biotech company is developing narcotic-inspired treatments for addiction and mental illness.

Year-end tax planning as stock market losses mount

Here's how this year's bad market can help you turn a profit come tax time, even if you're not wealthy.

Read more: 'Help is on the way': Should you talk to someone from the IRS about your taxes? IRS commissioner says it will be a lot easier

Evolution of credit ratings in the real estate market

The American mortgage market was practically nationalized, Fannie Mae and Freddie Mac went straight to the government and bought almost all new mortgages.

The federal government has mandated Fannie and Freddy to use alternative credit scores, which could affect someone looking to buy a home.

On Oct. 27, Freddie Mac said the average US 30-year fixed-rate mortgage interest rate was 7.08%, down from 3.14% a year earlier.

But speaking of a possible recession, some mortgage bankers are predicting lower lending rates in 2023. Here's how high interest rates can go.

Now onto Elon Musk's Twitter

Elon Musk, the CEO of Tesla and SpaceX, now also runs Twitter: He began firing three senior executives from the social media company and allotted it $200 million.

More information from Musk and Twitter:

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Stocks fall as investors digest September jobs gains

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