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).
Lead Analyst at TVREV, Alan Wolk, joins Cheddar to discuss the latest in media and business news, including why business at the box office may be slowing down.
With stubborn inflation sticking at about 2.8%, there’s a chance that the Fed won’t cut rates this year. That might be the smarter choice in the long run.
The health and wellness industry is booming, expected to hit $14 trillion by 2032. Equinox teamed up with Function Health to revolutionize health optimization.
Featherie, a line of sustainable and functional golf wear for girls, fills a void in the market, catering to the increasing number of female junior golfers.
The CEO of LiveOne, Rob Ellin, discusses the DOJ's lawsuit against Live Nation and Ticketmaster, how will if affect you and the future of live events. Watch!
