A slide in tech stock caused the S&P 500 (^GSPC) to close lower on Friday for the sixth straight day.
Bridgewater Associates Co-Chief Investment Officer Karen Karniol-Tambour notes that a lot of investors tend to have significant exposure not just to US stocks but some of the Big Tech names specifically. As a result, "it doesn’t take a lot to basically say ‘maybe I’m too concentrated,’" Karniol-Tambour says, prompting them to sell the stocks.
When it comes to when the Federal Reserve will start cutting rates, Karniol-Tambour thinks that "on the margin, we’re going to get a little bit less rate cuts than what’s in the market, but all of that is a lot less than what was expected just a couple of months ago." She adds that the market is "catching up to the reality" that with both the economy and inflation remaining strong, rates are going to have to stay higher for longer.
Karniol-Tambour advises investors to build a resilient portfolio. How do you do that? She gives a few suggestions, including shifting asset allocations to have less exposure to stocks, picking stocks that may be more resilient to whatever the economy brings, and looking at what stocks will perform when "everything else falls."
Watch the video above to hear which region Karniol-Tambour says investors may want to start taking a closer look at.
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