Some will keep imploding under pressure or succumb to competitors. Not all tech innovators will break into a sustained profit. With innovative names in the gutter again, I do think brave investors like Wood can improve their return prospects with companies that still have sound growth strategies and a means to gradually transition into profitability in the future.

This past January saw tech begin to flex its muscles again, but the relief rally was short-lived. If we are, innovative tech may finally have the legs to climb out of the hole again after falling hard.

Even as Fed Chairman Jerome Powell maintains his hawkish tone, we are closer to the end of the rate-hike cycle than just a year ago. She even believes that deflation may follow the recent wave of inflation, giving the Federal Reserve room to cut rates at some point next year. True to the investing strategies she has always preached, Wood still sounds upbeat on innovation stocks. Regardless, those looking to buy the crash in innovative tech should be careful because, as we learned in 2022, buying the dip in hopes of a quick gain could lead to nothing but pain. Now, it's impossible to tell if the broader basket of tech innovators has already fallen below where they should be. Budget cuts, layoffs and all the sort have hurt your average startup.Īs the macro climate continues to beat them down, though, I think we will eventually reach a point where the punishment is overdone.

SIVB, Financial) in the books, it will also get tougher for tech companies with cash flow issues to find funding for expensive projects.

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