A better question is what drove these tech stocks up to ridiculous valuations in the first place. I mean, come on, Tesla??? It's absurd. Apple is a very solid company, obviously, but are they really worth north of $2T, much less 3T? They've seen a 70% gain in value this year. Anyone who thinks that can just go on forever is fooling themselves. Slow and steady growth is one thing, but what we've seen in the tech stocks over the past six months is irrational and emotional and that never ends well.
Apple's sales have been strong, but how many of those sales were because of the extra $600/week people were receiving? I live in a vacation town and this summer was crazy. People weren't working and they were up here throwing money around like it was going out of style. A friend who owns a boat rental business had his busiest summer ever. But now that's dried up, and it dried up fast. Will we see such impressive pandemic sales from the tech giants next quarter? The quarter after? Or the quarter after that? I doubt it. The longer this goes on, the more weary people will become and the more they'll hold on to what little money they have.
My personal feeling is that if you've had a good run with Apple (or Tesla!), SELL!
