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STORY: :: Markets expert says investors should look

for buying opportunities as stocks plunge

:: Scott Wren, Senior Global Market Strategist at Wells Fargo

:: August 5, 2024

:: St. Louis, Missouri

"Stocks that were certainly in technology and communications services sectors, they were highly overvalued, in our opinion. So, I think you're just coming back to some more reasonable valuations. I think that what you're going to see in coming weeks is data, whether it's earnings, whether it's economic data that says, you know, yes, the economy is slowing, the labor markets weakening, but they're not weakening or slowing substantially. So, this looks a little bit overdone in our opinion. And so we're looking for buying opportunities here."

"...if your timeframe is two, three plus years, you need to be looking for spots to buy stocks here, not looking for reasons to sell stocks. So, look at pullbacks when time is on your side as an opportunity, have a plan. And when you get the opportunity, you need to do the hardest thing, which is to step in, execute the plan, and buy stocks when people are afraid."

"You're probably in for a run of sub 2% quarters, let's say the next three or maybe even four quarters might show GDP (Gross Domestic Product) growth in the U.S. less than 2%. But that's not the end of the world. That's modest growth. We don't expect that recession, and we expect better things in the global economy and the U.S. economy after we see some rate cuts from the Fed and have that trickle through the economy and rate cuts from other central banks around the world as well."

Wall Street's main indexes slumped on Monday as risk appetite among investors dropped on fears of a U.S. recession following weak economic data last week, sending tremors across global markets.

Market worries eased a bit as the day progressed and stocks pared losses after data showed U.S. services sector activity in July rebounded from a four-year low amid a rise in orders and employment.