Microsoft (MSFT) trades at 20.4x forward P/E and has fallen 30% as an AI beneficiary; Oracle (ORCL) is down 55% from all-time highs at 19.4x forward P/E and is pivoting to AI infrastructure while hedge funds bought shares last quarter.
The CNN Fear and Greed Index shows extreme fear at 17/100, creating potential buying opportunities for long-term investors in oversold tech stocks amid rising geopolitical uncertainty.
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The Fear and Greed Index is worth checking in on at moments like this, when the S&P 500 is on the verge of a correction. The Index, which makes use of a number of different technical indicators, is a pretty good way to gauge the main emotion of investors. And right now, that emotion is undeniably “fear.” In fact, it’s “extreme fear, with the figure currently sitting at 17 out of 100 (lower means more fear; higher means more greed).
As the timeless Warren Buffett saying goes, investors should be “greedy when others are fearful.” Of course, it’s hard to be a buyer of stocks when you’re paralyzed with fear. That said, buying at such extremely oversold levels, I think, could be a wise move, even if the uncertainties (especially on the geopolitical front) couldn’t be greater.
The VIX is higher, so is safe-haven demand, and, of course, volatility has been quite tough to grapple with. Just about every technical indicator that goes into the CNN Fear and Greed Index signals “fear” or “extreme fear.” And that might mean taking the opposite side of the trade might be a wise idea, even if it’s a recipe for a big shot to the chin in the near term. In this piece, we’ll look at two names in Microsoft (NASDAQ:MSFT) and Oracle (NYSE:ORCL) that might be overdue for a bounce.
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Can we really consider Microsoft magnificent…
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