Which Tech Stocks I Plan to Buy When the Market Crashes, and the Entry Price Levels

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After more than 10 years of patient waiting and accumulating my cash reserves, I am finally seeing some possible signs of the start of a market correction.

If you have been watching my videos, you will know that my ultimate investing strategy is to wait for a big crash before going all-in to scoop up cheap stocks for the long-term.

Many people have been asking me if the crash is over, but since there is no consensus, things could go either way at this time.

Table of Contents

General Market Trend:

This chart here shows the worst case scenario for the S&P 500 (weekly chart), and if the market really does go all the way down, then it will trigger the entry prices for many of my entry prices for the stocks which I intend to buy.

However, as prices are unpredictable, I plan to scale in and buy in bits and pieces, adding to the positions which I already have.

Let’s take a look at some of the potential drivers for 2019.

Bullish factors:

US policies to boost economy ahead of elections
Tech advancements to improve productivity
Brexit cancelled?

Bearish factors:

Interest rates increasing and more hikes to come
Trade war with China
Nuclear threat of North Korea
Brexit woes
Falling U.S. corporate profit margins
Record high U.S. corporate debt
Illiquidity in the U.S. corporate bond market
Extreme, costly climate events
A eurozone crisis
Europe needs negative interest rates to fight recession
Loss of jobs due to tech advancements and automation
High inflation in emerging markets

My preferred sector is the tech sector, especially after my 1-month trip to Silicon Valley last year.

Why Focus on the Tech Sector?

As more jobs get automated, the surplus gains will go to the big tech companies
Tech companies will expand by buying up the best of the non-tech companies
I read somewhere that in 10 years there will only be 100 companies, and in 50 years there will only be 10 companies
I prefer to pick the big ones because they will “eat up” the smaller ones

My Top Picks & Entry Price Levels:

Facebook (FB) – Entry price: $80
Google (GOOG) – Entry price: $750, $600
Amazon (AMZN) – Entry price: $1000, $700
Apple (AAPL) – Entry price: $130, $100
Microsoft (MFST) – Entry price: $85, $60
Netflix (NFLX) – Entry price: $200, $125
Tesla (TSLA) – Entry price: $250, $180
Baidu (BIDU) – Entry price: $130, $90
Alibaba (BABA) – Entry price: $110, $85
Tencent (700) – Entry price: $220, $170

Do note that these are the “worst-case” scenario prices, and it is quite likely that prices may never reach there, so I plan to accumulate along the way and add to my portfolio.

Other notable potential IPOs in 2019:

Slack
Palantir
Stripe
Airbnb
Lyft
Uber
Didi Chuxing
Toutiao

I am pretty confident the next wave of financial and economic gains will go mainly into the tech sector, with the focus on applications of AI, machine learning, data science into every aspect of our lives. The biggest winners will be those who own the algorithms.

That said, there will also be risks, such as increased regulation or anti-monopolistic backlash, which could negatively affect the stocks.

Good luck, and get ready to buy and hold for the next 10 years! 😀

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Spencer Li

Spencer is an avid globetrotter who achieved financial freedom in his 20s, while trading & teaching across 70+ countries. As a former professional trader in private equity and proprietary funds, he has over 15 years of market experience, and has been featured on more than 20 occasions in the media.