Tech Stocks

Retireby40

When was the last time Tech stocks sank so low and how long did it take to recover.

Don't invest too much but of what I have invested, most is in tech.

Have no intention or rush to sell but currently sitting at around -60% and dropping each week.

dunstonh

When was the last time Tech stocks sank so low and how long did it take to recover.

Between 2000-2002 tech stocks lost upto 90% of their value.   They took almost 20 years to recover if you had bought at peak.    Although some were quicker and some never recovered.

Prism

The L&G global technology index is down 23% this year - are you invested in some specific stocks to be 60% down?

It will all come down to company performance. If those companies are still making profits then they should recover much like eveything else. Those in debt may never recover.

Noneforit999

I think most people with stocks/funds are down overall.

We were 14% up in January, we are 3.5% down now. 

The thing with investing is that it needs to be for the long term, so 5+ years. 3.5% down now could be 10% up in a year and 50% up in 5 years.....hopefully. 

Malthusian

Retireby40 said:

Don't invest too much but of what I have invested, most is in tech.

If I was you I would be forecasting what effect it would have on my life if it never recovers, and whether it would be better to cut my losses on at least some of the investment by reinvesting into a more mainstream diverse portfolio which could be reasonably expected to at least grow in line with inflation.
If you don't invest much and it has little effect on your life either way, that would naturally be a waste of time, and it becomes more about what would cause you to kick yourself harder: missing out on recovery (which would be a 150%* profit just to get you back to square 1), or seeing the funds never recover or even lose even more.
As DunstonH says, after the 2000 tech bubble, some technology funds took c. 20 years to recover. That's almost "never" for all practical purposes, as so few people would have held on for that time. Many technology funds were quietly taken to the back of the woodshed and merged; a rare exception is AXA Framlington Global Technology which was founded in 1999 and didn't recover from the crash until 2019. 
*edited - 150% profit, 250% of the current value.

[Deleted User]

Some never recover, I think that's the nature of tech stocks.
A fund might have many losers, with a few picks going on to become very successful companies, hopefully realising a gain overall.
Picking individual stocks is a fool's game, unless you're lucky or have some kind of relationship to the company and have better knowledge/understanding than the market is pricing in.

Retireby40

Yeah basically what I did was gamble. If my stocks went to 0 tomorrow or disappeared of the face of the earth it wouldn't change my life. 

Likewise if the stock doubled or trebled it would also have little impact on my life.

I hold stock like Amazon, Tesla and Nio and a few other things. Amazon and Nio (bought at $39 and rose to 65ish and then fell of a cliff) are the 2 main fallers. I get why they are falling and the market is falling.

My plan is just to leave it there and see what happens. I'm in no rush.

aroominyork

Malthusian said:

Retireby40 said:

Don't invest too much but of what I have invested, most is in tech.

... reinvesting into a more mainstream diverse portfolio which could be reasonably expected to at least grow in line with inflation.

Care to share?

Linton

aroominyork said:

Malthusian said:

Retireby40 said:

Don't invest too much but of what I have invested, most is in tech.

... reinvesting into a more mainstream diverse portfolio which could be reasonably expected to at least grow in line with inflation.

Care to share?

Any broad global portfolio should do so. Over sufficient time and all other things being equal  companies's costs and income willl rise with inflation and hence you would expect profits to also do so.  This would lead to a corresponding increase in share prices.  Also people would have more £s to spend and hence be able to spend more £s on buying shares forcing an increase in share prices. In parallel if UK inflation is higher than global inflation the £ will decline in value giving increased share prices for foreign shares.

aroominyork

Well, I hope it works out that simply.