CNBC: Why wealthy investors remain bullish on market and tech stocks in particular
Published Tuesday, July 27, 2021 | CNBC.com
- The recent 900-point Dow Jones Industrial Average drop seems like a blip as the stock market quickly reached a new record, but market jitters were back on Tuesday with the Nasdaq leading losses and some big tech earnings names like Apple declining before their second quarter reports.
- Investors with $1 million or more in a brokerage account they manage on their own came into third quarter earnings bullish on the economy and stocks, according to an E-Trade Financial survey.
- There was a significant uptick in wealthy investors who said tech would be the best sector in the third quarter and think “old favorites” in tech may be positioned to lead as they have for so much of the past decade.
“Optimism has the psychological momentum,” said Lew Altfest, CEO of Altfest Personal Wealth Management. But he added that the virus still has the potential to reverse that, evidenced by the Dow’s 900-point drop as the delta variant came into focus — the CDC is now revising its masking guidance again to be more cautious indoors — though he thinks the bigger risk to investor sentiment is that growth is just not as good as current expectations. “The optimism I have shared for a longer period of above-average growth is what we can still have, but the logical situation is sometime next year, less than a year from now, we will be looking at normalized growth and that isn’t what people want to hear.”