The first half of 2022 is over. And it was a doozy for Wall Street. The S&P 500 dropped more than 20% in just six months. Indeed, tech stocks were decimated. That’s the market’s worst first-half performance in over 50 years!

A lot of investors are freaking out. They’re scared, reasonably so.

Source: whiteMocca / Shutterstock

But smart investors are actually getting bullish. That’s because the data suggests that on the heels of such abysmal stock performance, a huge rally may come next.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Specifically, we could see an enormous 50%-plus rally across all tech stocks and a 100%-plus rally in certain high-growth stocks.

So, while a lot of investors are running from market, you and other smart investors will be running toward it. And in 12 months, when you’re sitting on triple-digit profits in certain tech stocks, you’ll be glad you did.

Here’s a deeper look.

The Best of Times Follow the Worst of Times

In the stock market, the best of times often follow the worst of times.

That’s especially true for tech stocks.

The Nasdaq, which is mostly comprised of tech stocks, lost more than 30% of its value in the first half of the year. That puts the index on track for its worst year ever.

Such huge down years for the Nasdaq are rare. In fact, over the past 20 years, it has only dropped more than 20% just twice, in 2002 and 2008.

Guess what happened in 2003? The Nasdaq popped 50%. Guess what happened in 2009? It flew more than 50%.

Those were the index’s two best years over the past 20.  

In other words, the Nasdaq’s two best years in the century followed immediately after its two worst years.

When it comes to tech stocks, the best of times always come after the worst of times.

Right now, we’re in the worst of times. It’s worse than what happened in 2002 or 2008. It’s the biggest decline yet.

Historically, then, what comes next will be the biggest rally yet. Based on this data, it’s not unreasonable to think that tech stocks soar 60%, 70% or more in 2023!

But certain high-growth stocks will rally far more than that…

Find Alpha in High-Growth Tech Stocks

When tech stocks stage a huge 50%-plus “comeback” like in 2003 and 2009, certain high-growth stocks tend to soar 100%-plus.

In 2003, for example, the Nasdaq rebounded by about 50%. In that same year, high-growth tech stocks soared a lot more. Avaya (NYSE:AVYA) popped nearly 400%. Novell jumped 215%. Corning (NYSE:GLW) rose 210%. Yahoo gained about 170%.

At the time, all were high-growth stocks.

It’s the same story in 2009. The Nasdaq rose more than 50% that year. Leading the rally were high-growth techs stocks like Advanced Micro Devices (Nasdaq:AMD), Qorvo (Nasdaq:QRVO), Seagate Technology (Nasdaq:STX), Expedia (Nasdaq:EXPE), Amazon (Nasdaq:AMZN), and Booking (Nasdaq:BKNG). Those stocks rose anywhere from 160% to 350% in 2009.