The current global stock market sell-off will be seen by investors as a “major buying opportunity” as they go “bargain-hunting” to top-up their portfolios, affirms the CEO of one of the world’s largest independent financial advisory and fintech organisations.
The comments from Nigel Green, the chief executive and founder of deVere Group, come as European and Asian markets fell on Friday, following an aggressive sell-off on Wall Street on Thursday.
The tech-orientated Nasdaq Composite index plunged 5% while the benchmark S&P 500 tumbled 3.5%.
Tech stocks took the biggest hit, with the likes of Apple down 8%, Tesla 9%, Microsoft 6% and Amazon 5%.
Mr Green says: “Some companies were over-priced and over-bought and this underscores that some of the froth is coming off.
“Although tech stocks bore the brunt of Wall Street’s sell-off, the digital revolution that’s taking place right now, with our daily lives becoming ever more digitalised at a staggering speed, means tech will remain one of the mega-trends for investors for the foreseeable future.
“Savvy investors will be drawn to the massive growth and opportunities that tech offers.
“With some of the heat being taken out, they will – perhaps more judiciously than before – seek to capitalise on this dip.”
He continues: “With some talk of markets being on the brink of correction territory, profit-taking, mispricing of high-quality equities, and lower entry points, this will be seen by many as a major buying opportunity – especially after global equity markets recently hit new highs.
“As ever in times of increased turbulence, there will be winners and losers. A professional fund manager will help investors take advantage of the opportunities that volatility presents and mitigate potential risks.”
In the current volatile environment, Mr Green opines that investors should be revising their portfolios and “drip-feeding new money into the market to take advantage of the opportunities whilst simultaneously reducing risk.”
This, he added, is “what I will be doing as an investor.”
The deVere CEO concludes: “Where possible, investors should use the turbulence to their financial advantage.
“No–one knows for sure what will happen in the immediate future, but history shows that stock markets typically rise over the longer-term.
“As such, over the coming days, many investors will be bargain-hunting.”