SPY•U.S. stocks plunged Thursday, with the Nasdaq down nearly 5%, the S&P 500 more than 3% and the Dow more than 2%. David Bahnsen said tech valuations remain too high and suggested investors look to defensive sectors instead.
David Bahnsen, chief investment officer at The Bahnsen Group, said Thursday’s tech-stock selloff was not a buying opportunity, citing valuations he described as disconnected from reality. He said the S&P 500 is too concentrated in tech-related stocks and suggested consumer staples and energy, which he said tend to have stable cash flows and a history of dividends. The selloff followed fears of tougher AI regulations after Democrats won control of Congress in Tuesday’s midterm elections.
