MENU

ARM Holdings plc Leads The FTSE 100 Sharply Down

The FTSE 100 (FTSEINDICES: ^FTSE) is 1.25%, or 83 points, lower at the time of writing after a rapid sell-off in US and Asian markets last night.

ARM Holdings (LSE: ARM) and Sage Group were among the worst performers, falling 5% and 2% respectively, after the US technology index the NASDAQ suffered its worst day in three years, slumping 3%. 

appleShares in ARM have rocketed 600% in the last decade, and its microprocessor designs are featured in 99% of the world’s smartphones and tablets. Sage develops software products for small and medium sized companies.

Tech stocks have been trading at sky-high valuations for some time now. ARM, for instance, trades on a P/E of 38. Handsomely valued, but not as stratospheric as newly listed online businesses like AO World (a trailing P/E above 200) and Just Eat (a trailing P/E above 250).

These companies look ridiculously expensive, and their valuations assume barely a bump along the road — that their success is, in a word, inevitable. That might not be the case.

Morrisons, meanwhile, is among the few leading shares trading up, adding 2p to 200p.

To date in 2014 the FTSE 100 is down 2.5%, or 184 points, compared with a 639 point gain at this time last year. It’s likely that the tech sell-off in the last 24 hours could continue.

But no matter the state of the market, you can still keep compounding your wealth, so long as you harness your investing acumen. When it comes to success, mindset is everything.

I'd recommend you read the Motley Fool's "Ten Steps To Making A Million In The Market". Indeed, most people won't bother to put in the effort, but after reading our easy-to-understand report, you'll end up streets ahead of everyone else.

For your FREE copy -- simply click here.

Mark does not own shares in any company mentioned. The Motley Fool has recommended shares in Morrisons.