I know that buying the overall market is less risky than buying individual stocks. But given that these big tech stocks are down so much more than all-time highs compared to the overall market, is it better to buy those stocks right now? And to wait for a bigger overall dip on Voo before putting money there?
I also realize that if the market overall continues to go down, those big tech stocks will not be immune and will also continue to fall….
Any thoughts on this? Where and when it's better to put money into these individual stocks compared to putting it into VOO? Thanks
Right now does it make more sense to put money into VOO or indiv big tech stocks that have fallen much further?
byu/ArnoldisKing instocks
Posted by ArnoldisKing
18 Comments
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If anyone on this website could accurately predict how VOO or big tech stocks will move, they will be trillionaires and not on this website giving you stock advice. Literally infinite money glitch.
How do you know any particular stock will recover?
Big tech can definitely be the better buy but only if you actually have a view on earnings, margins, and valuation. ”Saying it’s down more from its highs” isnt really a reason.
VOOs the cleaner default, spreads your risk across 500 names.
With single stocks, you need tighter conviction and smaller position sizes.
Could always buy a growth fund that focuses on big tech stocks. At least then you have diversification among companies rather than a single company. SCHG is down ~15% in 3 mos compared to ~8% for VOO
I’m putting all my extra cash into Meta and MSFT atm.
All my automatic 401k deposits still continue to go to voo equivalents. Nothing changes there.
You’ll never time the bottom
Easy. IF you know which ones will grow more, then invest in those.
I’d recommend a crystal ball
VOO is so heavily weighted with big tech already, so you’d be making that move if you have high conviction in just a handful of companies rebounding and not caring about the other 490+ holdings or whatever
MSFT is joke cheap, fade in now. NVDA is too good not to start nibbling. META will bounce hard at some point. Airlines & XHB on sale (recent relative strength in XHB). Just some friendly ideas, obviously very tech heavy, it’s led the market for 35 years.
depends on your time horizon. Also, not a good idea to catch a falling knife
I rotate sector ETFs a lot
I buy a share or two every day or two.
There is no logic to what’s going on just keep stacking a little.
This will pass just like the last 800 crisis.
Most people don’t have time to actively manage individual stocks. Buy VOO but don’t dump everything into a single ETF. Buy ETFs by sector, emerging market, mid caps/small caps, alternative asset (REITS, commodities).
In uncertain times, diversification is even more important.
Buy strength, not weakness. Trust.
Everyone in here arguing whether the big tech names like MSFT and META are cheap or not. Who tf knows. All I know is every single one of those companies is spending insane amounts of money on AI and that requires memory. Which is sold out for the next two years at least and no longer on a commodity cycle (I think). Throw your money at MU, SNDK, and maybe even WDC while they’re down. Everyone needs memory. Everyone will continue to need more memory (for the foreseeable future).
Wait
It’s all going lower
Voo seems safer. Individual is more risk to reward,