The Dow Jones Industrial Average and the S&P 500 fell for a third straight day Tuesday as investors awaited what could be a hawkish message out from Federal Reserve Chairman Jerome Powell later this week. Some market participants believe investors have gotten too exuberant this summer, tilting toward more risky assets when inflation, growing recession risks and overly inflated earnings expectations remain concerns.
“This bear in our view has one last act,” read a note from Lisa Shalett, head of the global investment committee at Morgan Stanley Wealth Management. |
Meanwhile, UBS recommended investors continue to build resilient portfolios that can weather further market volatility, including adding to more defensive sectors such as health care, and taking advantage of longer-term trends.
“We expect equity markets to remain volatile as investor sentiment oscillates between hopes that the Fed will succeed in steering the US economy to a ‘soft landing,’ and fears that it will not,” UBS’ Global Wealth Management chief investment officer Mark Haefele wrote in a Tuesday note.
Some long-term trends investors can explore are in green tech, cybersecurity and agriculture, the firm said. |
