Tech stocks are a safe investment, right
Just six months ago we witnessed the botched Facebook IPO, a truly embarrassing episode for Wall Street and the media hype machine. However, confidence in tech stocks was not shaken. Not that long ago Apple peaked at $705 and other tech stocks did quite well. It did not last.
On Thursday, Intel and AMD hit their 52-week lows. Intel hit an intraday low of $19.98, slipping under $20 for the first time since September 2011. In fact, Intel shed 24 percent of its value over the last there months. AMD fared even worse. The stock dropped 8 percent and closed at $1.92, losing 53 percent of its value in three months. Through much of 2010 and 2011 AMD traded in the $8 to $10 range.
Even the mighty Apple is being mauled by the bear market. The stock slipped to $525 on Thursday, and although it’s still up 30 percent year-on-year, Apple lost 25 percent of its value since September.
Fears of a double-dip recession in Europe, the US fiscal cliff and other concerns are clearly heavy on investors’ minds. So basically the market is being dragged down by debt ridden European socialists and Randian right-wingers in the US. Odd bedfellows, but there you have it. There is a price to pay for being governed by inept demagogues from both sides of the political spectrum.
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Peter Scott
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