Is the sweet time for pandemic stocks over?
![Is the sweet time for pandemic stocks over?](https://ussnsimg.moomoo.com/1443523373710167956.png/bigmoo)
$Netflix (NFLX.US)$ tumbled 21.8% on Friday after the company's disappointing quarterly report. It was the first major tech stock to report earnings this season.
The $Nasdaq Composite Index (.IXIC.US)$ is off to its worst start to a year, through the first 14 trading days since 2008. ![]()
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![Is the sweet time for pandemic stocks over?](https://ussnsimg.moomoo.com/1153707213185901900.png/bigmoo)
Stocks that flourished during the pandemic in particular, are off to a rough start in 2022. ![]()
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![Is the sweet time for pandemic stocks over?](https://ussnsimg.moomoo.com/7093186740025697956.png/bigmoo)
Why?
While investor exuberance drove many of these stocks up last year, 2022 is beginning to paint a different picture.
Investors are worried that rising rates will negatively impact high-growth stocks, because it means it's more expensive to borrow money. Not only that, but they also may see Netflix's growth as harbinger of things to come for other pandemic stocks.
The psychology of the market cycle also plays a role — amid these fears, investors have adopted a herd mentality and begun selling their shares in droves. In fact, search interest for the term "selloff" recently reached peak interest of 100.
![Is the sweet time for pandemic stocks over?](https://ussnsimg.moomoo.com/9117753388348089720.jpg/bigmoo)
The best days for growth stocks may be already behind us. ![]()
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![Is the sweet time for pandemic stocks over?](https://ussnsimg.moomoo.com/3290925560369638234.jpg/bigmoo)
Fund managers' opinions
According to a survey from $Bank of America (BAC.US)$, net overweight positions on technology stocks fell to 1%, lowest level since December 2008.
![Is the sweet time for pandemic stocks over?](https://ussnsimg.moomoo.com/105960103103218984.png/bigmoo)
![Is the sweet time for pandemic stocks over?](https://ussnsimg.moomoo.com/449997710021303816.png/bigmoo)
The survey results highlight that optimism continues to abound for stocks, despite the Federal Reserve signaling a more aggressive policy tightening to tame surging prices.
Instead of luring investors into bonds, the prospect of higher rates has instead triggered a rotation within equity markets from more expensive sectors, such as technology, to cheaper shares that are bound to benefit from a booming economy.
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Source: Bloomberg, visualcapitalist, CNBC
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