Quoted from The Wall Street Journal:
Stocks have come under pressure due to concerns about the Fed’s pullback of easy monetary policies as it combats the recent bout of high inflation. Consumer prices rose in April at a slower pace than the previous month, but still faster than economists had expected, data released Wednesday showed.
That fueled more worries that the central bank will raise interest rates at an aggressive pace and crush economic growth, weighing on markets that had grown accustomed to loose monetary policy. Tech stock particularly flourished in the ultra-low interest-rate era and have tumbled sharply this year, with the Nasdaq Composite trading at its lowest level since November 2020.
“They [tech investors] found themselves at the most vulnerable time, the farthest out on the cliff, so now they’re walking back from the cliff and trying to get on more solid ground, and they’re changing their risk profiles,” said Dan Genter, chief executive and chief investment officer of Genter Capital Management.
Mr. Genter recommends investors to take advantage of the recent declines in the market, which have made equities more affordable. His firm isn’t worried about a recession but is still holding dividend-paying stocks out of caution.