Stock investors should capitalize on the recent market correction by broadening portfolios beyond just tech, says one top Wall Street strategist


  • Tech stocks’ time in the spotlight is over, and investors should begin shifts to value stocks and cyclical sectors, James Paulsen, chief investment strategist at The Leuthold Group, said in a recent note.
  • The S&P 500’s brief Thursday correction marks “an opportunity to ‘broaden your bets'” before valuations rebound, Paulsen said.
  • Money supply growth surged in recent months on the back of Federal Reserve easing and the CARES Act. That trend has preceded economic expansions by 12 months in all eight recessions since 1960, according to the strategist.
  • The cyclical sectors that avoided bankruptcy during coronavirus lockdowns “may currently be positioned with the greatest upside profit leverage,” Paulsen said.
  • Still, investors should hold on to some growth positions as their fundamentals remain healthy, he added.
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The S&P 500’s brief correction opened the door for a shift to neglected corners

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‘Dumb money’ is fueling one of the biggest lies on Wall Street, researcher says

“Nobody likes to be average.”

How investors should navigate a day traders’ market, according to one researcher

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That idea is reinforcing “one of the big lies from Wall Street” as retail investors turn to platforms such as Robinhood to try their hands at stock-picking, Larry Swedroe, chief research officer at Buckingham Wealth Partners and co-author of “The Incredible Shrinking Alpha,” told CNBC’s “ETF Edge” on Monday.

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The rush of retail traders to the stock market during this year’s volatility has romanticized stock-picking in a potentially dangerous way, said Swedroe, whose latest book is just out in its second edition.

“That’s what Wall Street tells you — we could do better than average — which of course is possible to do,” Swedroe said. “But the fact is that’s one of the big lies from Wall Street.”

“We know that if you just passively invest

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