In the last decade tech has been a large part of the US economy. There are high expectation for tech companies in the coming months with President Trumps plan to cut taxes and regulations on these industries. So, should you feed into the hype?
Tech can be a very unstable industry to invest in. Smaller tech companies like Nvidia are very volatile, and unpredictable. Last month they fluctuated from $98 to $109, and back down to $103. Even big companies like Apple are not a 100% safe bet. May 13th of last year apple hit it’s lowest price since October of 2014. However, since then they have grown at a stable yet impressive rate.
No one can deny that americas use of tech will continue to grow. In my lifetime I have seen the cellular phone develop from a large bulky device with a big antenna to a sleek, innovative machine. In just 21 years. Time will only tell what kind of amazing devices we have at our disposal in another 20 years.
To come back full circle. Should you let President Trumps proposal on changing the taxes and regulations on the tech industry influence your investing strategies? My advice would be to stay away from small, and risky companies strictly because they are all around hard to predicts. Instead, invest in large name tech companies that are showing strong signs of innovation such as Apple and IBM. I would strictly invest in companies that are American based, due to the fact that President Trump’s motto is “America First.” Another thing to think about is the fact that a lot of these tech companies heavily rely on foreign labor and foreign parts. So that may be a big factor.
That’s all for this week. I hope this weeks blog was helpful. As always if you have any questions please do not hesitate to leave a comment or ask me directly! Till next time!