The S&P 500 (^GSPC) ended its sixth straight day of declines on Friday, driven by declines in tech stocks.
Karen Karniol Tambour, co-chief investment officer at Bridgewater Associates, said many investors tend to have significant exposure not just to U.S. stocks, but especially to some big tech stocks. . As a result, “it doesn't take long to basically say, 'Maybe we're too focused,'” Karniol-Tambour said, urging him to sell his shares.
As for when the Fed might start cutting rates, Karniol Tambour said: “At the last minute, the rate cuts will be slightly less than the market rate cuts, but all of them will be much less than the market rate cuts.” thinking. This was predicted only a few months ago. He added that the market is “catching up to the reality” that interest rates will have to remain high for a longer period of time as both the economy and inflation remain strong.
Karniol-Tambour advises investors to build resilient portfolios. How do you do that? She advises changing your asset allocation to reduce your exposure to stocks, choosing stocks that are more resilient to whatever the economy throws at you, and how stocks stack up when “everything else goes down.” Here are some suggestions, including considering how to achieve similar performance.
Watch the video above to hear Karniol Tambour say which regions investors should start taking a closer look at.
For more expert insights and the latest market trends, click here to watch the full episode of Market Domination Overtime.
This post was written by Stephanie Mikulich.
