The first quarter of 2024 is winding down and the remaining three are likely to make some investors very unhappy, whether they realize it now or not. Interest rates, a presidential election, cash-saturated markets and a highly anticipated cryptocurrency halving are poised to wreak havoc on a handful of investments, shrinking nest eggs and unraveling financial plans.
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No one can predict the future, but GOBankingRates spoke with experts in money and the markets who issued stark warnings about four investments in particular.
If you have cash in any of these investments, you might want to talk to a financial professional about hedging your bets and diversifying yourself out of harm’s way.
Overvalued Tech Stocks
The tech-heavy Nasdaq index is up more than 10% year to date and nearly 19% over the last six months. Many of the biggest corporations in the world are tech companies, and their stocks are standard features in the most common ETFs and 401(k) funds, where they’re flying high — for now.
But as Reuters points out, “Tech stocks are usually considered high-risk investments” and many insiders think they’re overvalued and due for a reckoning.
“At the moment, tech stocks are trading at inflated valuations, fueled by investor enthusiasm and low-interest rates,” said Becky Leighton, content head at Coin Insider.
Reuters backs that up, reporting that investors borrowed cheap money when interest rates were at historic lows during the pandemic and pumped their cheap cash into tech stocks.
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“But if market conditions change or growth projections fall short, these stocks could see corrections that lead to losses for investors,” said Leighton.
That outcome is looking more and more inevitable.
At the start of the year, Nasdaq wrote, “Currently, the tech sector trades at a high valuation of nearly 29 times its 2024 earnings. This elevated price-to-book level demands significant earnings expansion for these tech companies to sustain their market positions. Investors are now focusing on whether these firms can enhance earnings to justify their lofty…
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