The Investment Thread

SteveSBrickNJ said

The posters on this thread are so far above me in investing competency. Yet maybe someone will comment on my very basic question:
My 401k has a "Science and Technology" fund that has not done well for months.
With covid still around and more people using technology than in the past....why would such a fund not do well? :unsure:

Click to expand...

Without knowing specifically about the fund, in general, COVID was very good to a lot of tech companies that thrived off of people being home all the time, as restrictions have lifted and so on, people are spending less time at home... so you likely saw a spike up that was not sustainable long term.

Also, a lot of Science/Tech companies are high growth and depend on low interest rates to fund their high growth rates. With inflation, the era of cheap money is ending.... higher interest rates will mean slower growth, and tech companies tend to be hit harder in that area.

For a 401K, if you aren't closer than 10 years to retirement, I wouldn't stress it too much... depending on the fund.... tech stocks should do well over the very long term.