The ASX 200 has seen a dramatic contraction in a considerably small timeframe today, losing $AUD 50 billion by midday today. The nearly %3 drop has erased all gains from the previous month, sliding down 167 points to 5946 in response to Wall Street slumping overnight.
US stocks suffered their worse single-day plummet in the past three months, dragging down indices like the ASX with them. The Dow Jones saw a fall of 800 points as a consequence of a sudden sell-off of tech stocks which up until recently had remained the staple investment for investors to continually bank on despite the negative impact of Coronavirus.
The ASX 200 has consequently seen a concurrent dumping of technology stocks, as well as retail stocks being caught up in the negative sentiment. Kogan.com has taken a ten percent loss during today’s stock dump, as well as Appen and WiseTech Global both losing seven percent. Myer and Afterpay have suffered a five percent loss.
With optimism waning on what seemed like the last safe bet with stocks, technology companies and their retail equivalents, one might be wondering what industries would be left with which institutional investors can redirect their optimism towards.
At a certain point, the harsh economic conditions seen globally in response to the Coronavirus pandemic will coalesce into a very sharp needle that will almost inevitably pop the economic bubble that is forming due to overbought stocks.
Tower Technology, being market-neutral and non-predictive, will continue to trade during any and all market upsets.