Two Technology Stocks That Would Survive A Tech Wreck In 2021

  • Three reasons why a massive correction in technology could be on the horizon in 2021
  • The best-performing sector during one period often becomes the worst during the next
  • IBM is old school and could offer stability
  • DELL would survive and thrive during a market correction in the sector
  • Time to lower exposure to the high-flying tech stocks- Take the money and run

Technology has changed the world. Over my six decades on this earth, I have witnessed the most incredible advances in history in science, communications, entertainment, and all aspects of daily life. Today, we carry around smartphones that are powerful computers. Wide-ranging applications have replaced many other products and services, including maps, cameras, calculators, libraries, and others.

IBM – A massive correction in technology stocks could be in store for next year. This means investors should consider lowering their exposure in high-flying tech stocks and into technology companies that could offer stability such as IBM (IBM) and Dell (DELL).

The global pandemic highlighted the significant wonders of technology as it allowed people to work from home, keep in touch with friends, family, and work contacts, shop, and do many other activities that would never be possible in the 1960s through the turn of this century. The virus also turbocharged the leading technology companies’ growth and earnings, pushing some market caps way past the $1 trillion level.

The world’s wealthiest person is now Jeff Bezos, with a net worth over an incredible $182 billion. His (AMZN - Get Rating) began as a bookseller and flourished into a world-leading online e-commerce merchant. The growth of technology and the value of its leaders have been nothing short of amazing.

However, companies have experienced an exponential growth rate that will be more than a challenge to sustain over the coming years. While technological advances will continue to change and simplify our lives, the shares’ trajectory is likely to level off or turn lower. Gravity in the stock market can be a powerful force. There are many examples of how today’s skyrocketing stocks often become tomorrow’s losers throughout history.

If the technology sector experiences a substantial correction in 2021 and beyond, two companies that have not experienced the same exponential share price appreciation could be a safe harbor.

International Business Machines Corporation (IBM - Get Rating) and Dell Technologies Inc. (DELL - Get Rating) are likely to hold their value even if the rest of the technology sector suffers a significant share price adjustment over the coming months and years.

Three reasons why a massive correction in technology could be on the horizon in 2021

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