The tech trade has struggled in recent weeks. Neuberger Berman's Raheel Siddiqui says it's an opportunity to buy the dip and position for a stronger 2026. You can sign up for Business Insider's daily markets newsletter here. Worried that the tech stock sell-off that's rattled markets in recent weeks is the beginning of the end for the AI boom? Don't be, says Raheel Siddiqui, senior investment strategist at Neuberger Berman, which manages $460 billion. Siddiqui told Business Insider on Monday that ...

Worried that the tech stock sell-off that's rattled markets in recent weeks is the beginning of the end for the AI boom? Don't be, says Raheel Siddiqui, senior investment strategist at Neuberger Berman, which manages $460 billion.Siddiqui told Business Insider on Monday that while the sell-off isn't quite finished, and could continue over the next few weeks amid timid positioning from fund managers, investors should be ready to buy the dip if such a scenario plays out. That's because the recent pullback h ...

Group 1 - Nvidia's strong earnings report alleviated concerns about a potential AI bubble, contributing to a significant market rally with the Dow Jones Industrial Average rising by 700 points before experiencing a subsequent decline [1] - The mixed September jobs report, which showed strong payroll gains but an increase in the unemployment rate to the highest level in four years, contributed to market volatility [2] - Federal Reserve policymakers are adopting a more hawkish stance, casting doubt on the possibility of a rate cut in the near future [2] Group 2 - The decline in bitcoin's price, which has dropped over 30% from earlier highs, is correlated with the stock market's performance, particularly affecting the TQQQ ETF that tracks the Nasdaq-100 Index [3][4] - The GENIUS Act, enacted on July 18, has established a regulatory framework for stablecoins, which has diminished bitcoin's transactional role, contributing to its price drop [3] - The selloff in bitcoin may be forcing investors to liquidate stock positions, particularly those who used leverage for crypto investments [4] Group 3 - Bitcoin has become a significant indicator for stock market movements, with algorithms reacting to the relationship between stocks and bitcoin [5] - Investors with substantial holdings in AI-related stocks are also likely to own cryptocurrencies like bitcoin and ethereum, suggesting a connection between the two asset classes [6] - The current liquidity issues in the market may be reflected in the performance of cryptocurrencies, which are seen as leading indicators for equities [6]

Core Viewpoint - The stock market experienced a significant reversal on Thursday, with the Dow initially rising by 700 points before ending the day down by 300 points, potentially influenced by a major sell-off in bitcoin [1][2]. Group 1: Market Dynamics - The volatility in the stock market may be attributed to growing fears surrounding an AI bubble, which have overshadowed strong earnings reports from leading companies like Nvidia [2]. - Bitcoin is undergoing its worst sell-off since 2022, with prices dropping over 30% from recent highs, raising liquidity concerns among investors [2][5]. - The correlation between bitcoin's price and the TQQQ ETF, which aims for three times the daily performance of the Nasdaq-100 Index, suggests that declines in bitcoin may force investors to liquidate stock positions [5]. Group 2: Investor Behavior - Margin calls from brokerages due to losses in bitcoin may compel investors to sell stocks to maintain liquidity, as crypto brokerages typically offer higher leverage than stock brokerages [5]. - Algorithmic traders may have reacted to bitcoin's decline by selling stocks, as the drop triggered new sell signals, indicating a reliance on bitcoin as a risk sentiment indicator [6][7]. - The perception of bitcoin as a proxy for speculative behavior suggests that its performance is closely monitored by market participants, influencing broader market movements [7][8].

Really interesting commentary from Bloomberg's ETF analyst Eric Balchunas- Overall, ETF inflows were massive yesterday (ETF buyers love dips)- Meanwhile BTC ETFs saw massive outflowsBalchunas comments: "Bitcoin is in a weird place, the narrative is totally in tact (nothing stops this train + institutionalization still in effect) but coiners are afraid of their own shadow rn, it's hard to watch frankly, a Vanguardian would never act this way"The bull case narrative touted across all of 2025 is still in place ...

Core Insights - ETF inflows are experiencing unprecedented growth, with total inflows reaching $13 billion in a single day and $40 billion over the past five days, leading to year-to-date inflows of $1.16 trillion, a record for the industry [1][2] Group 1: ETF Inflows - The majority of capital is directed towards equity ETFs, particularly broad-market funds like Vanguard's VOO and iShares' IVV, as well as high-growth technology funds such as SMH and TQQQ [2] - Bitcoin ETFs have also seen a resurgence, attracting nearly $500 million in a single day, indicating renewed investor confidence in cryptocurrency [3] Group 2: Market Performance - The S&P 500 increased by 3.65% in September, while developed markets excluding the U.S. rose by 2.5%, with notable performances from The Netherlands (+13.27%) and Korea (+9.04%) [6] - Emerging markets advanced by 5.49%, with Peru (+12.8%) and South Africa (+9.47%) leading the gains [6] Group 3: Active ETFs - Assets in actively managed ETFs reached a record $1.73 trillion by the end of September 2025, surpassing the previous high of $1.63 trillion [5] - The growth of actively managed ETFs is attributed to their transparency and flexibility, highlighting their increasing role in global investment portfolios [7]

Core Insights - The article discusses two popular ETFs, QQQ and TQQQ, and their respective advantages and disadvantages for trading and investment strategies [2][4]. Group 1: QQQ ETF - QQQ is an ETF based on the NASDAQ-100, which includes the top 100 performing stocks in the market [3]. - The "magnificent 7" companies (Amazon, Google, Microsoft, Tesla, Apple, Meta, and Nvidia) constitute nearly half of the NASDAQ-100 due to their significant market capitalizations [3]. - QQQ has a high entry price, nearly $600 per share, but offers a lower management fee compared to TQQQ, making it a suitable long-term investment option [4]. Group 2: TQQQ ETF - TQQQ is highlighted as a great option for trading, particularly for options trading strategies [4]. - The article suggests that TQQQ can be beneficial for boosting returns, especially in a rallying market like NASDAQ [2].

Core Insights - The article highlights the investment strategies of Paul Franke, a seasoned investor with 39 years of trading experience, emphasizing his contrarian stock selection style and the development of a system called "Victory Formation" for identifying stocks based on supply/demand imbalances [1] Group 1: Investment Strategies - Paul Franke suggests using 10% or 20% stop-loss levels on individual stock choices and recommends a diversified approach by owning at least 50 well-positioned stocks to achieve regular outperformance in the stock market [1] - The "Bottom Fishing Club" articles focus on deep value candidates or stocks that are experiencing significant upward technical momentum reversals [1] - The "Volume Breakout Report" articles discuss positive trend changes supported by strong price and volume trading actions [1] Group 2: Performance Recognition - Paul Franke was consistently ranked among the top investment advisors nationally during the 1990s and achieved the 1 position in the Motley Fool® CAPS stock picking contest during parts of 2008 and 2009, out of over 60,000 portfolios [1] - As of June 2025, he was ranked in the Top 4% of bloggers by TipRanks® for 12-month stock picking performance based on suggestions made over the last decade [1]

Core Viewpoint - The article emphasizes the importance of conducting personal due diligence before making investment decisions, highlighting that past performance does not guarantee future results [2][3]. Group 1 - The content is based on personal thoughts and research, and it is not intended as financial or investment advice [2][3]. - The article clarifies that the author has no stock, option, or similar derivative positions in any of the companies mentioned, nor plans to initiate any such positions within the next 72 hours [1]. - It is noted that the views expressed may not reflect those of Seeking Alpha as a whole, and the analysts may not be licensed or certified by any regulatory body [3].

Key Strategy - Leveraged Rotation Strategy (LRS) can amplify returns while effectively managing risk by reducing drawdowns and smoothing the investment process [1] - LRS involves using a moving average line as a filter: when the index closing price is above the moving average, investors buy the index with leverage; when it's below, they switch to US Treasury bonds or cash [1] - The strategy uses the moving average of the index, not the leveraged fund itself, as a filter [2] Market Analysis - Leverage can linearly amplify returns and risks, but market behavior isn't always linear; it varies with market volatility [1] - High volatility is detrimental to leverage, while small fluctuations and upward trends favor it [1] - When the S&P 500 index is above its 10-day moving average, the annualized volatility is 156%; below, it's 228% [1] - When the index is above its 200-day moving average, the annualized volatility is 146%; below, it's 269% [1] - Most significant drops occur when the index is below certain key moving averages, with the 20-day moving average being particularly important statistically [1] Performance Metrics - From October 1928 to December 2020, Buy & Hold strategy yielded a 94% annualized return, regular 3x leverage yielded 162%, and 3x LRS using the 200-day moving average yielded 267% [1] - A $10,000 investment in the S&P 500 in October 1928 would have grown to over $39 million by December 2020, while the 3x LRS strategy would have reached $28 trillion [1] - During the Great Depression, the S&P 500 fell by 86%, but the 3x LRS strategy only fell by 49%; in the 2008 financial crisis, the S&P 500 fell by 55%, while the 3x LRS strategy fell by 31% [1]