Three Tech Stocks I’m Buying In This Bear Market
I began investing in March of 2018. Since then, I’ve read several finance books on becoming a millionaire and I invest 30% of my paycheck into the stock market every month.
Among the gains and losses made, these are the three stocks I’ve held onto for the past four years and continue to buy during this bear market.
Invesco QQQ Trust (QQQ)
QQQ is an index fund that follows the Nasdaq 100 index. It allows you to buy parts of 100 different stocks without buying those stocks individually.
This index fund is similar to buying the S&P. However, QQQ is a lot more volatile.
That’s because QQQ is a tech-heavy stock.
If you were to buy SPY, an index fund that tracks the S&P 500, you’d find SPY’s top two holdings are Apple at 6.83% and Microsoft at 6.06%. Meanwhile, QQQ’s portfolio top two holdings are Apple at 13.11% and Microsoft at 10.53%.
If you want a tech-heavy index fund, QQQ would be a better option. If you prefer a broader index fund that isn’t as volatile and has less risk, SPY or VTI would be a better choice.
Since I’m in my 20s, I’ll continue to hold QQQ, as I can deal with the volatility.
What I’d watch out for: QQQ is a lot more volatile than buying a broader market index fund like SPY or VTI but has produced higher returns in the past when compared to those two. Of course, past returns are not an indication of future returns.
Apple Inc. (AAPL)
The first stock I ever purchased was Apple stock. I’ve had faith in the company since I purchased a used 2nd-generation iPod Touch in 2010. I fell in love with the company because they created a device that outdid its competitors, like the Motorola Razr and LG Chocolate phones.
Apple has grown significantly since then, expanding its lineup to include iPhones, iPads, Apple Watches, and multiple subscription models. These include a fitness program, streaming services for TV and music, and online storage.