It’s been a rough start to the week so far for the Nasdaq-100 Index (QQQ), which has given up more than 2% ahead of the much-awaited and final Federal Reserve Meeting for December. The good news is that market volatility breeds opportunity if investors don’t panic and are patient to buy some of the highest-quality names at a deep discount to their fair value. Currently, two names are beginning to look much more interesting from a valuation standpoint within the Nasdaq-100, with these being PayPal (NASDAQ:PYPL) and Netflix (NASDAQ:NFLX).It’s been a rough start to the week so far for the Nasdaq-100 Index (QQQ), which has given up more than 2% ahead of the much-awaited and final Federal Reserve Meeting for December. The fear is that due to persistently high inflationary readings, Fed Chairman Jerome Powell could accelerate tapering of its bond purchases and potentially pull forward the initial rate hike. This has had an outsized impact on the Nasdaq-100 Index, given that this is where the valuations are the most expensive, which has only been able to be justified by the low-interest-rate environment we’re in currently.
The good news is that market volatility breeds opportunity if investors don’t panic and are patient to buy some of the highest-quality names at a deep discount to their fair value. Currently, two names are beginning to look much more interesting from a valuation standpoint within the Nasdaq-100, with these being PayPal (PYPL) and Netflix (NFLX). Let’s take a closer look at both companies below:
(Source: TC2000.com)