Attention! A big market crash like the year 2000 may come in the market, the global head of Jefferies explained the reason

Christopher Wood, Head of Global Equities, Jefferies, says that the recent fall in the markets is just the beginning and it may see a big decline in the coming days. The biggest fall in the current round is being seen in tech stocks. Christopher Wood, linking this decline of tech stocks to the huge fall at the global level in the year 2000, said that at that time also the first dotcom shares had fallen in the same way and a few months after that the whole market sat down.

Wood said in his recent weekly newsletter, “Today’s situation can be seen in relation to the huge decline in markets around the world, including the New York Exchange in 2000. At that time the stock of dotcom companies was the first to fall, while the rest of the market was slightly lower. Was trading with volatility. But then we all saw the S&P500 index crash in the next six months.”

There has been heavy selling in the shares of tech companies or new age companies across the world including America and India for the last one or two months. The Nasdaq 100, an index that includes almost all the major tech companies in the US, has fallen more than 16 per cent in the past few months.

Also read- Shares of Paytm, CarTrade fell to the lowest level, Zomato slipped 3%, why are the shares of new age companies falling?

In India too, shares of many new age companies including Paytm, Zomato, CarTrade and PB Fintech are trading at or near their lowest levels. The shares of many of these companies are trading at a price even below their IPO issue price.

Whereas in America, the biggest decline has been seen in Facebook. Facebook was the sixth largest company in the world a few weeks ago with a market value of over $1 trillion. However, on Thursday, Facebook’s shares fell and closed at a market value of $ 565 billion and now it has slipped to number 11 in the list of big companies. In this way, the wealth of Facebook shareholders has come down to half in the last few weeks.

Christopher Wood believes that now this decline is not going to stop. He said, “The situation today reminds me of the year 2000. I believe that now this decline is not going to stop and now gradually its effect can be seen in other sectors also.” Market experts say that investors need to stick with the market leader companies with good growth in earnings at this time.

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