Legendary investor Warren Buffett once gave the advice to be "fearful when others are greedy, and greedy when others are fearful." That sentiment strikes at a curious aspect of human psychology: People tend to overreact to both good and bad news.
For instance, shares of Latch (NASDAQ: LTCH) have fallen 33% year-to-date due to supply chain headwinds, and shares of Roku (NASDAQ: ROKU) have dropped 27% due to slowing viewer engagement. But neither situation is that surprising, given the impact of the pandemic, and both situations should resolve eventually. In the meantime, investors should consider buying a few shares at a discount.
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Tech Sell-Off: 2 Unstoppable Stocks to Buy Right Now