3 Expensive Tech Stocks at Risk if the Coronavirus Selloff Continues
The dreaded coronavirus pandemic continues to take a heavy toll on equity markets, with major indices well into bear-market territory. The Federal Reserve has cut interest rates to zero, and this news failed to reassure investors.
COVID-19 has caused mayhem in China, and similar declines can be expected in other countries that are struggling to contain the virus. According to China's data from Trading Economics, in the first two months of 2020, the country's retail trade fell 20.5%. Industrial production was down 13.5%, and fixed-asset investment plunged 24.5%.
So how should investors trade in such a volatile market? Well, for one, they need to avoid tech stocks that are trading at high valuations. Tech stocks tend to outperform the equity markets in a bull run but grossly underperform in a broader market sell-off.
Source Fool.com
