Technology stocks have been hot for years now, but things are starting to cool off. With venture capital investment in Silicon Valley declining steadily in recent months, investors are understandably becoming convinced that a broader softening must be in the offing. Even if the damage turns out not to be of a far-reaching sort, it seems to many that now is the moment to liquidate technology-related positions and put the money somewhere else.
Unfortunately, many investors are scrambling to fulfill the latter half of that goal. Not knowing which stocks to buy right now, some are even wondering if it might make more sense to keep braving the growing troubles in the technology arena. While it can be tempting to succumb to that kind of passivity, experts mostly advise, at the present time, that investors become more active and ambitious.
The troubles that have rocked the domestic oil and gas energy for over a year now, for example, seem to some like they might be starting to recede, at least in certain places. While dozens of relatively high profile companies went under as the price of oil plummeted and stayed at rock-bottom levels, not all of the losses in the industry reflected such existential problems. In fact, some experts are now pointing to a range of fundamentally healthy concerns that suffered share price depreciation in that generalized rout and which now stand out as good buys from a value investor’s perspective.
Something similar is happening in the field of property management, even if in a less dramatic way. Once again, many companies in the industry have yet to reattain the stock prices they achieved in the bubble that preceded the last recession, in some cases despite putting up plenty of impressive numbers since. Just as in the oil and gas industry, investors will need to be careful to seek out those stocks whose pricing reflects a real underestimation of the companies in question, though, so as not to be misled in other ways.
Even while the technology sector seems poised to endure some troubles, then, there are plenty of other places for investors to focus. Seeking out value wherever it might be found is never a bad idea, and now just might be one of the better moments to do so of recent times.