Somebody call 911, because tech stocks are dying.

Over the past three days, the tech-heavy Nasdaq has dropped 4.7%, its worst 3-day performance since May 2021 – and, at that time, the whole index was flirting with correction territory.

The problem?

The Fed.

The masters of the financial universe – as I like to call them – have a done full 180-degree pivot on their policy stance over the past month. They went from being ultra-dovish throughout all of 2021 – calling inflation transitory and saying there’s no need to even talk about rate hikes yet – to being ultra-hawkish, saying that they’re going to fight inflation with every tool in their arsenal.

That includes ending the pandemic-era bond-buying program. That includes rate hikes. That includes reducing the Fed’s balance sheet holdings.

The Fed is now signaling that all three of those things are coming in 2022… which is problematic because all three of those things will reduce market liquidity.

You see, Big Tech stocks expanded to historically super-stretched valuation levels on the idea that excessive market liquidity provided by the Fed will remain in place. Now, it’s getting pulled out from under them. So, naturally, tech stocks are crashing.

Ouch!

But let’s zoom out here. The main reason a lot of folks are invested in tech stocks – and the big reason why they’ve been the market’s biggest winners over the past two decades – is that technology is taking over the world.

No more taxis. Now, we have ride-hailing apps.

No more clothing stores, Now, we shop online.

No more movie theaters. Now, we stream shows on our TVs.

Everywhere you look, tech is taking over the world. Admittedly, the Fed can do a lot. But it can’t – and it won’t – change the course of this technological takeover.

Make no mistake. Regardless of which way the Fed moves in 2022, disruptive technology platforms will fundamentally reshape our lives over the next decade as they use a combination of artificial intelligence (AI), blockchain, cloud computing, Big Data, and robotics to create products and services that make our personal and professional lives cheaper, faster, and better.

And, as that happens, the companies that make these widely adopted technology products and services will see their sales, profits, and stock prices soar.

Said differently, tech stocks are still the best long-term bet in the market. No doubt about it.

But, in the face of the Fed tightening monetary policy in 2022, many tech stocks could struggle in the near-term.

Still, there is opportunity out there. As we like say around here at InvestorPlace, this isn’t so much a stock market, as it is a “market of stocks.”

Applied to the current situation, while tech stocks may falter over the next few months, not all tech stocks will struggle. Some will actually thrive during this period.

The question is – what are the best tech stocks to buy right now?

We’ve put together a list of things you need to do right now to maximize your portfolio’s returns over the next few months. They include the following:

1. Focus on companies making (and selling) stuff today. The prospects of higher rates, red-hot inflation, and less liquidity are diluting the present value of future profits. We are seeing a shift in markets away from pre-production and pre-revenue stocks valued on 2030 projections, and toward revenue-generating stocks valued on 2023-2024 projections. This shift will likely persist throughout the first quarter.
2. Put extra emphasis on profitable This is the “show-me-the-money” year. In the face of tightening monetary conditions, investors aren’t willing to take big leaps of faith on companies that are promising to make money tomorrow. Rather, they are only buying stocks of companies that have profits today. We believe profitable stocks will outperform unprofitable stocks over the next few months.
3. Join the “flight-to-quality.” The recent trading action can be characterized as a flight to low-risk, high-quality assets. We suspect this flight-to-quality will persist. Focus on companies with strong balance sheets, great cash flows, and high gross profit margins.
4. Look for relatively lower valuations. The richer the valuation, the harder the stock has been hit in 2022. Stocks with the highest price-to-sales multiples have been crushed in 2022. Stocks with the lowest price-to-sales multiples have weathered the storm. We believe lower-valuation stocks will outperform in the near-term.

Bottom-line, in order to protect against near-term market volatility, an emphasis on high-margin, money-making, cash-rich tech companies with relatively lower valuations is required over the next few months.

That’s why, in our flagship investment research product Innovation Investor, we are buying a handful of new tech stocks today.

We’re taking advantage of this sell-off. And we’re doing so smartly, by buying beaten-up tech stocks with tons of cash, huge profit margins, relatively reasonable valuations, and great long-term outlooks.

We believe this new batch of stocks is positioned to thrive both in the long run and amid the current tech stock rout.

The best part? We haven’t even released these picks yet. We won’t release them until after the market closes today.

So, by clicking here and joining us at Innovation Investor right now, you will be getting in first on our new wave of tech stock recommendations.

Clearly, we’re very excited. You should be, too.

This is the time when millionaires are made in the market. They’re made in washouts, by folks who are brave enough to stick by their beliefs, and buy the dip in tomorrow’s biggest winners – at today’s biggest discounts.

You know that old saying? Fortune favors the bold?

This is your opportunity to prove that saying right.

Click here and find out how to turn today’s tech stock weakness – into tomorrow’s huge profits.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.