Stock Market Sell-Off Broadens, Spreading To Tech Leaders — Time For Bargain Hunting?
“Investors have been disappointed with softer earnings guidance, especially companies with higher priced valuations,” Andrew M. Aran, managing partner at Regency Wealth Management, told International Business Times. “Several leading tech and other fast-growing company stocks are trading excessively high P/Es earlier this year.”
“Higher interest rates and sticky inflation make it difficult for the economy to continue avoiding a recession, and investors may be discounting it,” added Aran.
He sees stock prices continue to lose ground until there is clarity about the Fed policy, inflation and the stability of economic growth.
“As long as inflation is not at the Fed’s target, and economic data suggests continued strength, there will be uncertainty in the equities market,” he explained. “Not only about whether the Fed will continue to raise interest rates, but about how long the Fed will hold rates up for and what it will take to lower them.”