"why isn't the Nasdaq tanking as well?"
Partial answer (in repsonse to the different trajectories NDX v ASX) here:
Post #:66847949
As discussed the other day,techis the big differentiator.
Tech dominates the Nasdaq (as expected) and is increasingly dominating the S&P500 due to FAANG.
Tech is not a dominant sector on the ASX (as we said, you want tech, look O/S)
The American market and the Australian market have clearly been on different trajectories.
In 2022
NDX total return: -33%
S&P 500 total return: -18%
ASX 200 total return: -1%
Whereas the US stockmarket experienced its 6th worst year in history (thanks to tech wreck 2.0 - just look at the FAANG charts) the ASX experienced nothing of the sort.
I see 4 reasons for the resurgence of FAANG:
1) They've already come back from the stratosphere, compared to 2021
2) They've slashed their headcounts by 10's of thousands, which should provide medium term bottom line benefits
3) They are not susceptible to any dysfunction in the credit markets because overall they have massive cash balances, in effect they are net lenders
4) The AI effect. Even though there has been a massive correction in FAANG valuations, their market multiples are still on the high side, eg PE's mid to high 20's. As is always the case, the market values their legacy businesses (good) their growth runways (OK) and their growth options. This the great unknown. How much will legacy tech businesses benefit from AI? We have already seen Microsoft infuse AI in Bing and Office. As for Nvidia, your question, AI is front and center in that company. Then there is Google.
"why isn't the Nasdaq tanking as well?"Partial answer (in...
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