What’s Wrong With Tech Stocks?

What’s Wrong With Tech Stocks?
An electronic stock board is displayed at a conference hall in Tokyo, on Feb. 22, 2022. Koji Sasahara/AP Photo
Gary Brode
Updated:
Commentary 

Many investors are noticing that technology stocks are going down much more than the general market recently, and we’ve been getting a number of questions regarding the reason. This has to do with the expected increase in interest rates, which has been a frequent topic of this column. This phenomenon is well-known to market professionals and is the result of something called duration. Duration is simply a fancy word for how long it takes to get paid on an investment.

Gary Brode
Gary Brode
Author
Gary Brode has spent three decades in the hedge fund business. Most recently, he was Managing Partner and Senior Portfolio manager for Silver Arrow Investment Management, a concentrated long-only hedge fund with options-based hedging. In 2020, he launched Deep Knowledge Investing, a research firm that works with portfolio managers, RIAs, family offices, and individuals to help them earn higher returns in the equity portion of their portfolios. Mr. Brode’s work has been featured in the Wall Street Journal and Barron’s, and in appearances on CNBC, Bloomberg West, and RealVision.
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