The U.S. markets continued their sell-off Monday, with the Dow falling more than 1,000 points for the first time in history and most major indexes erasing gains for the year.
And while some may consider this a buying opportunity, Chad Morganlander, portfolio manager at Washington Crossing Advisors, says there are some areas to avoid.
“Stay out of the speculative names that are more story stocks,” he told Cheddar in an interview. “There’s a frothiness to the market, especially with some of the fringe stocks, that’s reminiscent of 1998 and ‘99.”
“You could still pick up some value, but you just have to focus on the boring parts of the market, which are really on the consumer staples side.”
The “growthier” tech sector did post some of the biggest losses Monday, with Nvidia, Square, and Google parent Alphabet all falling more than 5 percent. Some of the highest fliers in the Cheddar 50 Index -- Apple, Netflix, and Alibaba -- are in correction territory, down more than 10 percent from all-time highs hit just a few weeks ago.
At its lows of the day, the Dow had dropped more than 1,500 points or 6.1 percent. It crossed below the 24,000 mark for the first time since December 1.
For full interview, [click here](https://cheddar.com/videos/dow-is-down-around-1-800-points-after-last-two-sessions).
Pilots at American Airlines have voted to authorize a strike, and Southwest Airlines pilots are preparing to join them, as unions put more pressure on the airlines to approve new contracts with hefty pay raises.
Cheddar News takes a look at The Day Ahead as the Federal Reserve's two-day meeting kicks off on Tuesday while earnings season continues with some big-name companies such as Ford, Pfizer, Starbucks and Uber on tap to report quarterly results. The JOLTS report is also due to be released ahead of April job numbers.
Dan Geltrude, managing partner of Geltrude & Co., joined Cheddar News to discuss why it's vital for a college student to begin budget preparations early for college tuition. "It's developing good financial habits," he said. "I'm a strong proponent that in high school, there should be some teaching, some course ... about personal finance."
Brian Vendig, president of MJP Wealth Advisors, joined Cheddar News to discuss the market ahead of the Federal Reserve's meeting on Wednesday and as investors digest JPMorgan's takeover of First Republic Bank, which was recently seized by regulators. A slew of earnings are also slated to be released this week as well.
