Source: Bloomberg

Author: Carmen Reinicke, Magdalena Del Valle

At the beginning of August, the situation of the market was dazzling. The US stock market was affected by economic panic, dim performance, and global yen arbitrage transactions.This allows Wall Street to look for the corners of the market that may be treated unfairly.

Although the S & P 500 index fell 3%from earlier last week, it almost recovered all the loss of land, after falling around, the index was still about 6%from record high.Due to concerns about the macroeconomic and geopolitical background, market fluctuations will continue. Analysts encourage investors to adopt defensive strategies and seize some targets that are still targeted in the market.

"I don't think it is a bad idea to re -balance the investment portfolio when the market is called," said Rob Conzo, CEO and Managing Director of The Wealth Alliance LLC.

Of course, it is also risky trying to trade in an unstable market. The stock may fall again and cause the future to discount, or take the opportunity to quickly rise.For long -term investors, fluctuations may not make sense, and LPL Financial LLC chief global strategist Quincy Krosby said.

"If your investment portfolio is expected to achieve long -term growth, then you can continue to hold it and go through the volatility period," she said.

The following are the areas of market observer believe that there are opportunities in the stock market:

Semiconductor

Citi Group analysts said that the semiconductor stocks that have been hit in recent weeks seem to be quite attractive.

Philadelphia Semiconductor Index has fallen by about 20%from July.The industry's benchmark index is dragged down by macroeconomic pressure, high profit expectations, and downward risks of the automotive terminal market.

"We are still optimistic about this field, the main reason (artificial intelligence and memory factors) is still intact," the team led by Christopher Danely wrote in the report.

Micron Technology is the preferred stock of Citi.Other companies that get Citi -buying rating include Advanced Micro Devices Inc., Broadcom, Analog Devices Inc., Microchip Technology Inc., Nvida and KLA Corp.

Healthcare

The health care industry is usually regarded as defensive, so when other sectors in the market are over, investors will rotate into the sector.In the past month, the S & P 500 health care index has risen by about 3%, and running a large market that has fallen by more than 4%.

"I don't think this kind of market has ended," said David Harden, chief investor of Summit Global Investments.

Harden also believes that the industries related to weight loss pills have the prospects of upward growth.For example, Lilly's stock price fell sharply during selling.The stock soared last Thursday. The previous report's performance exceeded expectations and raised the revenue forecast in 2024.

Large -scale technology company

In recent weeks, technology stocks and so -called science and technology seven giants have been severely hit.A Bloomberg index that tracks the sector falls by about 15%compared with July.

This wave of pluys also inhibits the price -earnings ratio of this sector. For some investors, the large -scale technology stock market earnings ratio has been too high.At present, the expected price -earnings ratio in the next 12 months will be about 28 times, a five -year average of less than 30 times.

"If you have a low match before, you are now a good opportunity to increase your holdings," said Rhys Williams, chief strategist of Wayve Capital Management LLC.

Sensitive stocks

concerns about the macroeconomic environment often make stocks sensitive to interest rates more attractive, such as public utilities, real estate investment trusts and dividend stocks.

At present, the yield of the S & P 500 public business index is slightly higher than 3%.The benchmark index has risen about 16%so far this year, which is better than the broader market.The real estate sector may follow closely.

"Over time entering 2025, the real estate sector may surprise investors because the Federal Reserve hinted that the interest rate reduction, and the mortgage loan interest rate has also declined." Merrill and Bank of America Private BankDirector Joe Quinlan said.

In a turbulent market, it is reasonable to hold or increase dividend stocks to help balance shock transactions.

"High -income dividends can balance the stock part of the investment portfolio," Quinlan said.During the period of uncertainty, "If you can get a stable return from dividends, you can sleep more down to be more practical."