🏀 Tech stocks bounce back

You almost had us there | Let the big growth roll | Hey {NAME}, you’re on the free edition of Finimize. [Upgrade to Premium](: no ads, a third story every day, free events, and loads more on our mobile app. [Start for free here]( SPONSORED BY Hi {NAME}, here's what you need to know for March 10th in 3:04 minutes. 📈 [Thematic investing]( – investing in assets that stand to benefit from big-picture trends – is on the rise. So join Jan van Eck – yes, the CEO of ETF manager VanEck – on March 16th, and see what investment opportunities he’s sitting on. [Get your ticket here]( Today's big stories - The tech-focused Nasdaq index collapsed into a “correction”, but investors have been quick to take advantage - There's a simple checklist you can use to make sure you don't fall foul of your instincts – [Read Now]( - The OECD upped its forecast for global economic growth, thanks to the latest US economic support plan Quick Fix [Quick Fix] What’s Going On Here? The Nasdaq Composite index [fell]( into a technical “correction” on Monday, but investors had glossed over the hiccup just a day later. What Does This Mean? The tech-heavy Nasdaq rose 11% from the start of the year to hit its highest level ever by mid-February. But after weeks of poor performance, the index finally collapsed more than 10% from that peak on Monday – sending it into official correction territory. There’s nothing special about that in and of itself: it’d be far more worrying if there’d been a 20% drop, which would throw the Nasdaq into a “[bear market](”. But it does say a lot about how investors are behaving: the collapse was partly down to their [long-anticipated]( rotation away from high-growth tech stocks in favor of economically sensitive “cyclical” and cheap-looking “value” stocks. Why Should I Care? For markets: Investors are buying the dip. With the world focused on getting back to normal this year, companies whose earnings are closely tied to economic growth – think carmakers and construction firms – stand to benefit the most. Meanwhile, those whose earnings continue to grow no matter what – like the tech giants – will probably benefit the least. Still, investors were quick to “buy the dip” after the Nasdaq’s correction on Tuesday, initially sending the index straight back up 4% – so maybe the rotation analysts have been expecting in the States isn’t as straightforward as they thought. Zooming out: The rotation is a-go in Asia. At least the rotation is playing out exactly as predicted in Singapore: the country’s key stock market index is up 9% this year, flipping it from Asia’s worst performer in 2020 to its best so far this year. That’s probably because the index’s cyclical and value stocks make up 80% of its size – and they have a lot of room to rise after falling 12% last year. You might also like: [How to know if you’re a growth or a value investor.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Quick Fix&utm_campaign=daily-american-10-03-2021&utm_source=email) 2. Analyst Take How To Beat Your Biases What’s Going On Here? Investing’s easy when markets are going up, sure, but a time will come when you’re not sure [if you should sell or not](. And at that moment – whether it’s because markets have dropped, or because other investors have soured – your emotions might push you to take [the wrong decisions](. But the more aware of [your biases]( you are, the better you stand to do. Availability bias, for example: that’s when you overemphasize the most recent and easily available information, including [anything about investment performance](. Or framing bias: investors love a good story, and plenty of evidence suggests their decisions are heavily reliant on [how that information is presented](. So that’s today’s Insight: how to [put in place a process]( to stop your biases getting in the way of your long-term goals. [Read or listen to the Insight here]( SPONSORED BY AVALOQ The best things in life are free Take [Avaloq’s global investment survey]( today, and you’ll get a free Finimize Premium subscription and an advance copy of the exclusive survey report. It’ll reveal [how wealth moves]( and what that tells you not just about the financial industry, but the world at large. You’ll find out [how investors’ habits are being influenced]( by all the biggest trends: the pandemic, Big Tech, AI, sustainability – you name it. Their last report, for example, revealed that 44% of surveyed investors would [switch their financial services for ESG reasons]( – proving social responsibility is high on investors’ agenda. 73% think AI, robots, and automation will be [the defining trend of the future](, suggesting there could be big profits for the companies that take advantage. And 53% would [bank with a non-traditional player](, giving heavy-hitters like Apple and Google scope to break into a long-stagnant industry. So to secure your free advance report and Finimize Premium subscription, [take ten minutes to have your say](. [Take The Survey]( [Turn off adverts]( Check, Please [Check, Please] What’s Going On Here? Turns out America’s economic support package is already going a long way: the [OECD]( raised its forecasts for global economic growth on Tuesday. What Does This Mean? Now that the US has greenlit a $1.9 trillion [economic support plan]( and the vaccine rollout is in full swing across the world, the OECD thinks the global economy will grow 5.6% this year compared to [last]( – up from its 4.2% forecast in November. The spending plan has boosted the OECD’s estimate for the US’s predicted growth too: up from 3.2% to 6.5% – a jump that single-handedly lifts global economic growth by a full percentage point. As for the rest of the world, the OECD’s feeling more positive about the UK, the eurozone, and Japan as well, along with [emerging markets]( Brazil and Mexico. But China, for once, is coming up short: the OECD slightly lowered its growth estimate. Why Should I Care? The bigger picture: America makes the world go round. For all the talk of China’s [rising dominance](, the US is still the world’s biggest economy – meaning it has an outsized impact on the rest of the world. Case in point: the OECD estimated that higher US economic growth will add about one percentage point to Canadian economic growth, as well as about half a percentage point to the eurozone’s, the UK’s, Japan’s, and China’s. For markets: How to spend it: US edition. According to investment bank Jefferies, Americans who receive $1,400 checks as part of the US economic support plan are [likely to spend]( them on clothing, home improvement, outdoor dining, and travel ([tweet this](). So once that cash starts landing in people’s accounts, shares of American retailers, restaurants, and airlines could see a boost of their own. Then again, a third of wealthier Bloomberg survey respondents said they’d put their cash into savings, so maybe you’ll want to hold fire on that... You might also like: [Three ways to spend your stimulus check.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Check, Please&utm_campaign=daily-american-10-03-2021&utm_source=email) 💬 Quote of the day “Have a vision of excellence, a dream of success, and work like hell.” – Dr. Samuel DuBois Cook (a political scientist, professor, human rights activist, and civil servant) [Tweet this]( SPONSORED BY SOLGAARD Invest your money, make a difference Here’s your chance to [invest in a fast-growing company]( that’s doing big business and cleaning up the planet. [Solgaard]( is turning ocean plastic into award-winning luggage, backpacks, and accessories – and you have an exclusive opportunity to buy into the company via [StartEngine](. And that could be a smart investment: Solgaard [tripled its revenue]( between 2018 and 2019, [grew its ecommerce business 465%]( in 2020, and has [$10 million]( in cumulative sales. Plus, Solgaard’s won [all sorts of awards]( from Time Magazine, Fast Company, and CNET, and it’s already raised over $3 million from [14,000 backers](. But there’s only one month left to get involved: [find out more on StartEngine](. [Find Out More]( [Turn off adverts]( 📚 What we're reading - How one runner started a war ([Jezebel]() - Save $500 on your next adventure ([Dollar Flight Club]()* - Life as a QAnon widow ([Bustle]() - It’s all about the meat-free nuggs ([The Verge]() *This sponsored content helps us keep the newsletter free. 🤔 Q&A · [RE: Just The Tip]( “Why are investors selling off high growth stocks like tech on high inflation fears? Isn’t inflation usually good for stocks?” – Elle in London, UK “Generally speaking, stock prices shouldn’t be negatively affected by inflation because most companies are able to raise prices by at least as much as inflation over time. If, for example, wages go up by 2% a year, companies can probably raise their product prices by about the same amount. The bigger worry for investors is a rise in interest rates, which typically follows a pick-up in inflation. Higher rates mean more income from safer investments – whether cash in the bank or new government bonds. That makes them more attractive than some of the riskier assets out there. And right now, investors reckon high-growth stocks – some of which are at eye-wateringly high valuations – are among the riskiest, so they’re selling them in anticipation of rate hikes to come.” [Finimize] 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? 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