Microsoft, under the leadership of CEO Satya Nadella, has proven itself to be the world’s most valuable company. With its recent strides in artificial intelligence, Microsoft has positioned itself as a technology bulwark that is here to stay. But it’s not just the stock price that reflects this success. Microsoft’s massive footprint in the industry and multiple income streams ensure that both the company and its shareholders will continue to benefit for years to come.
As I read Andy Serwer’s comment about being “better to be right than early,” I couldn’t help but disagree. This notion seems to align more with the mindset of traders and market timers rather than true investors. In my opinion, success in the market is not about timing the market perfectly, but rather about staying invested over time. Sometimes, it’s better to be right and early.
-Chris Ryan, On s.com
A Lesson from History
As we reflect on the past, it is vital to remember the lessons history has taught us. The rise and fall of the Nasdaq serves as a poignant example of this (“How Rate Cuts Affect the Stock Market Depends on This One Thing,” Up & Down Wall Street, Jan. 26). In March 2000, the Nasdaq reached its peak, only to be met with a significant decline. The media played its part in this downfall, with a cover story titled “Burning Up.” Furthermore, Microsoft’s loss in an antitrust case further contributed to the Nasdaq’s 15% drop within a month. Although Federal Reserve Chairman Alan Greenspan attempted to counteract this decline by implementing a series of interest rate cuts, the Nasdaq still plummeted by a staggering 78%. The S&P 500 initially fared better until July 2001, when all hope seemed to crumble. The SPDR S&P 500 exchange-traded fund experienced a 52% drop, leading to the ultimate bottoming out of all indexes by January 2003. It is worth noting that Greenspan, affectionately known as “The Maestro,” did have a hand in inflating the real estate market, which ultimately led to the crash of the global financial system with the assistance of Wall Street.
Trusting in Exxon Mobil
Amidst the volatility of the oil industry, I choose to hold on to my Exxon Mobil stock (“Oil Has Had a Wild Ride. Exxon Can Thrive Even With Low Oil Prices,” Streetwise, Jan. 26). Although the company suffered losses during the pandemic, it remained committed to supporting its dividend. Additionally, Exxon is actively expanding its petrochemical business, which has a far-reaching impact on all aspects of our lives. While electric-vehicle sales may have declined, pickup sales continue to be strong. Furthermore, the upcoming summer travel and boating season presents an opportunity for increased demand. Lastly, the need to replenish our Strategic Petroleum Reserve cannot be ignored.
The Power of In-Q-Tel
In-Q-Tel is a force to be reckoned with.