Animal Spirits Podcast Is a Recession Bullish For Tech Stocks? (EP.248)
Mar 16, 2022
In this lively discussion, they dive into the potential for a recession and its surprising implications for tech stocks. Rising mortgage rates and volatile commodities like gasoline are also hot topics. The conversation shifts to the booming housing market and its million-dollar listings, especially in California. They humorously touch on the challenges of inflation, along with personal anecdotes on pets and pop culture, including the newest Batman film. Expect insights into NFTs, charity-driven initiatives, and some heartfelt reflections!
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Market Performance
- The year 2022 has seen the fourth-worst start for the S&P 500 since 1928.
- However, historically, the five other worst starts were followed by significant positive returns.
Tech's Market Dominance
- A 20% drop in the NASDAQ composite has vaporized $5 trillion, highlighting tech's increased market share.
- Tech stocks constitute 25% of the market, yet their impact is even greater due to widespread investments.
Recession and Tech Stocks
- A recession could be bullish for tech stocks in the long run, despite short-term bearishness.
- Recessions often lead to lower interest rates, benefiting growth-oriented tech companies.