“Technology shares led the broader market lower on Monday as investors dumped high-flying Big Tech stocks, pushing the Dow Jones Industrial Average and the S&P 500 off their record highs.”

That was the headline I came across the day I sat down to write my talking points for this week’s podcast episodes. 

The article goes on to say: “Investors rotated out of growth names, resuming a trend seen earlier this year amid rising fears of inflation and higher interest rates. Facebook dropped more than 4%, while Amazon and Netflix both dropped over 3%. Alphabet [aka google] dipped more than 2% after a downgrade by Citigroup.”

I’ve been telling clients for years that I think growth stocks are too expensive and overdue for a pullback. Never was I more wrong than in 2020, when the pandemic fueled further growth in the high-flying big tech names, as you and I stayed home and relied on Netflix, GrubHub, and Zoom and technology became essential to daily living.

Our stuck-at-home lifestyles fueled eye-popping growth in the biggest tech stocks in 2020. Apple and Amazon stocks were both up around 80% last year. Netflix was up 70%. And the tech-heavy Nasdaq, which was up ONLY 43% in 2020.

But as we’ve seen over and over again, it’s not unusual for the darlings of Wall Street to fall, even when it seems they’ll keep going up in value forever. 

Will 2021 be the year I am finally right after being wrong about growth stocks for the last 5+ years? Will value stocks finally catch up to their growth stock cousins and start performing more in line with their historical norms? 

We’ll explore these questions and more in this week’s theme: Are Value Stocks Coming Back In 2021?

That’s it for today. But before you go, I have a special treat for you. There’s still one more day to sign up for our virtual education event via Zoom - tomorrow night, Tuesday May 25th at 6:30pm (PST).

This event, “Investing in Uncertain Times”, features guest speaker Chad Morganlander, senior portfolio manager and co-founder of Washington Crossing Advisors. Chad is a regular on various media outlets, including CNBC, Bloomberg, Fox News, & The Wall Street Journal. 

Investing in uncertain times is certainly a timely topic right now! You’ll hear Chad’s perspective on investing and what he’s learned over the years managing nearly $9 billion in assets. 

The event is free and you can register by going to truenorthra.com/tickets. 

Thanks for listening! My name is Ashley Micciche...and this is the One Minute Retirement Tip. 

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