What we are seeing here is still fear over the government’s $85 billion bailout of AIG. Even solid financials like Wells Fargo (WFC) are seeing declines today. Most sectors are down 4-5%.
I believe this is temporary as profit takers exit their positions and short sellers find opportunities to push down stocks further. Looking at tech, there are still cheap stocks out there that I believe are oversold. Investors have to realize that companies like Google and Apple aren’t going out of business and with the holiday season coming up, the Android phone being released, Google’s potential acquisition of Valve and the rumors that a new version of the MacBook are coming out there’s no reason to panic and make a run on these stocks.
Apple and Google are on sale here and I’d like to solidify my position in Apple. I don’t hold any shares of Google but I do own shares of Wells Fargo.
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