Retail investors Thomas Vitowski, Cambridge University president, and Susan Noyes, Makeitbetter.net founder, have talked about their future intentions on CNBC, stating that Amazon.com Inc. (NASDAQ:AMZN) seems like a risky investment for the time being.
“I really invest for the long term and for most of my stocks I’m staying there. I’m not putting more in cash. I’m probably going to sell off Amazon, because I think if anybody’s going to suffer in a tech bubble that’s going to be it. They’re a little bit too predatory for me,” said Susan Noyes.
Whether a tech bubble is at the horizon or not is a matter of debate, although certain speculative articles do predict an economic meltdown. If so, Amazon.com Inc. (NASDAQ:AMZN) does seem a too risky investment to hold on to, yet not a fatal one.
Raising the cash at hand might prove a good decision for skeptics and risk averse investors, especially taking into consideration the unstable companies’ performance, including Amazon.com Inc. (NASDAQ:AMZN).
“I moved up my cash position. The last time I was on, I was 15-20%, now I’m closer to 25%. The one thing I find interesting is if you look at Dow 30 stocks, 21 of them have underperformed the S&P and nine of them have actually lost for the year [...],” informed Thomas Vitowski.
Amazon.com Inc. (NASDAQ:AMZN)’s price has been showing an unstable level, and apparently it is following an unclear cycle. This might be the reason that investors are somewhat reluctant to hold on to its stock. Nevertheless, the long term perspective tells us that Amazon.com Inc. (NASDAQ:AMZN)’s stock might still enjoy a bump, considering that there isn’t a tech bubble near enough.
For the ones that sold off or are planning to sell stocks there is no definite advice as to when to get back into equities. Analysts suggest switching to more cash, when securities have an undefined perspective regarding future prices, and waiting for a stock to be on its accumulation phase. However, few are actually precise when and for how long to perform either of the two actions.