Why you shouldn’t worry about a Big Tech pullback: Strategist
Big Tech stocks are slipping as Wall Street heads into the second half of the year. CFRA Research Chief Investment Strategist Sam Stovall joins Wealth! to discuss the pullback in tech and what to expect from the market in the back half of 2024.
Stovall expects more volatility down the line, explaining, “We are in traditionally the challenging third quarter. That is the worst of the four quarters on average in terms of price change and volatility. And September is the worst month of the year on average, falling more frequently than it rises.” With this historical pattern, he explains that being “forewarned is forearmed.” He encourages investors to sit back during the pullback, saying, “by the time you worked yourself up into a frenzy and convinced your advisor to lighten up on equities, the market is probably already on its way back to full recovery.”
He believes that tech is still “a viable sector,” and the pullback could present a buying opportunity for investors. Stovall adds, “The reason that we still like it longer term is because of the earnings growth that we see ahead. For 2025, we are looking for a little less than 15% growth for the overall market, but more than 20% growth for the technology sector. And a similar kind of outperformance in terms of earnings growth in 2026.”
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This post was written by Melanie Riehl
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