{"id":242219,"date":"2021-05-05T02:26:00","date_gmt":"2021-05-04T23:26:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/who-sparked-the-tech-stock-selloff-blame-the-boomers\/"},"modified":"2021-05-05T02:26:00","modified_gmt":"2021-05-04T23:26:00","slug":"who-sparked-the-tech-stock-selloff-blame-the-boomers","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/who-sparked-the-tech-stock-selloff-blame-the-boomers\/","title":{"rendered":"#\n  Who sparked the tech-stock selloff? Blame the boomers"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4020a7c73f0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4020a7c73f0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/who-sparked-the-tech-stock-selloff-blame-the-boomers\/#Wealthy_boomers_may_be_selling_in_response_to_Bidens_call_to_raise_capital-gains_tax_rate_analyst\" >Wealthy boomers may be selling in response to Biden\u2019s call to raise capital-gains tax rate: analyst<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/who-sparked-the-tech-stock-selloff-blame-the-boomers\/#William_Watts\" >William Watts<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Who sparked the tech-stock selloff? Blame the boomers<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Wealthy_boomers_may_be_selling_in_response_to_Bidens_call_to_raise_capital-gains_tax_rate_analyst\"><\/span>\n  Wealthy boomers may be selling in response to Biden\u2019s call to raise capital-gains tax rate: analyst<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div class=\"cx--next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000256767\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Treasury Secretary Janet Yellen isn\u2019t the only wealthy baby boomer getting the blame for Tuesday\u2019s tech rout.<\/p>\n<p> A subcategory of individual investors \u2014 \u201cthe older, boomer cohort\u201d \u2014 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to have played a role in a selloff that knocked 1.8% off the tech-concentrated Nasdaq-100<br \/>\n        NDX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598364\/realtime\" class=\"negative\">-1.85%<\/bg-quote><br \/>\n       on Tuesday and is part of a broader fall over the past week, said Eric Liu, co-founder and head of research at Vanda Securities, a research company that tracks activity by individual investors. <\/p>\n<div class=\"paywall\">\n       The selloff comes after older traders appeared to load up on equities.<\/p>\n<p>\u201cThis group has been raising its risk exposure since the U.S. election last fall, with cash levels now nearly back to pre-pandemic lows,\u201d Liu said in a Tuesday note. Recent trends in U.S. money-market funds paint a similar picture, he said. Institutional money-market assets have been on the rise since the beginning of 2021, while retail money-market assets have fallen.<\/p>\n<p>Liu emphasized that these retail flows are more representative of older traders using platforms provided by Schwab or TD Ameritrade, rather than \u201cthe Robinhood crowd,\u201d since the latter don\u2019t have the option of putting idle cash in traditional money-market funds.<\/p>\n<p>But why would boomers turn around and dump tech stocks? Liu said his guess was that worries around President Joe Biden\u2019s $2.3 billion capital-gains tax proposal may be on the rise, particularly after his address last week to a joint session of Congress. Biden has proposed raising the capital-gains tax rate from 20% to 39.6% for investors earning more than $1 million a year.<\/p>\n<p><strong>Read:<\/strong> Wealthy taxpayers are bracing for more taxes under Biden, but they\u2019re missing this key information<\/p>\n<p>Wealthier individual investors appear to have responded by selling off the stocks that have been the biggest winners since the start of last year, Liu said.<\/p>\n<p>The pain could spread. <\/p>\n<p>\u201cIf boomer selling continues into the back half of this week, I\u2019d expect these investors to begin looking to trim the second-best performing cluster of stocks since Jan \u201920: cyclicals and a bevy of reopening plays,\u201d Liu wrote (see table below).<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:220.703125%;\" data-mobile-ratio=\"220.703125%\" data-layout-ratio=\"220.703125%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-334137?width=140&amp;size=0.45309734513274336 140w,\nhttps:\/\/images.mktw.net\/im-334137?width=540&amp;size=0.45309734513274336 540w,\nhttps:\/\/images.mktw.net\/im-334137?width=620&amp;size=0.45309734513274336 620w,\nhttps:\/\/images.mktw.net\/im-334137?width=700&amp;size=0.45309734513274336 700w,\nhttps:\/\/images.mktw.net\/im-334137?width=860&amp;size=0.45309734513274336 860w,\nhttps:\/\/images.mktw.net\/im-334137?width=1260&amp;size=0.45309734513274336 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-334137?width=620&amp;size=0.45309734513274336\" data-enlarge=\"https:\/\/images.mktw.net\/im-334137?width=1260&amp;size=0.45309734513274336\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            Vanda<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>Stocks dipped to session lows around midday Tuesday after Yellen, 74, in\u00a0an interview with The Atlantic that was recorded Monday and aired Tuesday, said interest rates may need to rise \u201csomewhat\u201d to keep the economy from overheating. Later, in remarks after the market closed, Yellen, a former Federal Reserve chairwoman, emphasized she wasn\u2019t \u201cpredicting or recommending\u201d rate increases, adding that \u201cif anybody appreciates the independence of the Fed, I think that person is me.\u201d<\/p>\n<p>The Nasdaq Composite<br \/>\n        COMP,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598365\/realtime\" class=\"negative\">-1.88%<\/bg-quote><br \/>\n       ended the day with a loss of 1.9%, while the Dow Jones Industrial Average<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"positive\">+0.06%<\/bg-quote><br \/>\n       eked out a gain of just shy of 20 points, or 0.1%, and the S&amp;P 500<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.67%<\/bg-quote><br \/>\n       fell 0.7%.<\/p>\n<p>Liu, meanwhile, said he wasn\u2019t looking for the past week\u2019s tech weakness to turn into a rerun of the double-digit percentage declines seen last September or in the second half of February. <\/p>\n<p>Taking a broader look, positioning by speculative traders is elevated but \u201cless alarming\u201d than it was in the run-up to those two pullbacks, he said, adding that the same is true of trend-following commodity-trading adviser exposure to Nasdaq-100 futures.<\/p>\n<\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"William Watts\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"William_Watts\"><\/span>William Watts<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D3EAFFF18AD5%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Who sparked the tech-stock selloff? Blame the boomers &#8221; Wealthy boomers may be selling in response to Biden\u2019s call to raise capital-gains tax rate: analyst Treasury Secretary Janet Yellen isn\u2019t the only wealthy baby boomer getting the blame for Tuesday\u2019s tech rout. A subcategory of individual investors \u2014 \u201cthe older, boomer cohort\u201d \u2014 appears&#8230;<\/p>\n","protected":false},"author":1,"featured_media":242220,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-242219","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/242219","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=242219"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/242219\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/242220"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=242219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=242219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=242219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}