Following the longest bullish run in the history of U.S. financial markets, the start of the Great Lockdown looked like 2008 all over again back in March. This time around, however, investor confidence in the Silicon Valley proved decisive in securing a quick rebound.
“Quick” may even be an understatement; as of today, the big five tech stocks have all returned to their pre-coronavirus levels. In fact, Apple, Microsoft, Facebook, and Amazon are currently trading at their all-time highs, whereas Google is just several dollars short of doing the same.
Tech stock in mid-2020: the safest bet there is?
Then there’s Tesla, which crashed to about $360 in March, only to hit $1,360 earlier this week following nothing short of a miraculous run sprinkled with some optimistic earnings and talk about tech nobody on Wall Street seems to understand (like that ever mattered). Combined with a lack of trust in other market segments, it appears tech stock is in an excellent position to continue writing economic history.
Naturally, all of that’s assuming we’re not in for another crash in the vein of 2008. But even in that worst-case scenario, big tech could still be among the first industries to recover, especially given its natural disposition toward this work-from-home reality we’re now living in.