Us stocks continued to fall last night after the release of CPI data for April.
By the close, the s & p 500 was down 1.6%, the Dow was down 1%, and the Nasdaq was down 3.2%.
It is worth noting that the s & p 500 is down 18.5% from its all-time peak at the start of the year, approaching the threshold of a technical bear market (down 20%).
At present, the market sell-off is not over, how should investors deal with it?
Blackrock: make some changes through ETF and be optimistic about stocks
Blackrock's research team said that although it slightly reduced the risk of a deterioration in the macro outlook, a perfect economic scenario of low inflation and economic growth was almost impossible, but in a market that seemed to have no way out, everything became cheaper and more likely.
As stocks and bonds fall, some opportunities begin to emerge, and investors are advised to make some changes through ETF and be optimistic about stocks:
Many large companies offer investment grade credit funds, including IMCO's investment grade corporate bond Index ETFPIMCO Investment Grade Corporate Bond Index ETF (CORP.US) $And Goldman Sachs Access investment grade corporate bonds ETF$Goldman Sachs Access Investment Grade Corporate Bond ETF (GIGB.US) $。
Bank of America: small-cap stocks also have opportunities, and the company's performance guidance is better.
Bank of America Corporation said on Wednesday that if the risk of recession rises, large-cap stocks are more vulnerable to further losses than small-cap stocks. Small-cap stocks fell an average of 36 per cent during the recession, but the Russell 2000 has fallen nearly 30 per cent from its peak, and investors have now priced in nearly 80 per cent of the possibility of a recession.
The 17% decline in the s & p 500 from its trough to trough at the start of the year is still a long way from the index's average 32% decline during the recession.
"although corporate guidance and sentiment have weakened, small-cap stocks have risen more so far this earnings season, and importantly, the company's guidance is much better than large-cap stocks," BofA analysts said.
Goldman Sachs Group: avoid choosing pure value and growth stocks
Goldman Sachs Group said that the tightening of the financial environment and the excessive economic slowdown and the increased likelihood of falling into recession are one of the reasons why investors in US stocks choose to invest steadily. "in the current worrying stock market investment environment, we think stability is more attractive than growth or value," strategist David Kostin and his team wrote in a report on Sunday. At a time of slowing GDP and tightening [financial conditions indices], stocks with stable growth and low share price volatility usually perform well and are currently undervalued. "
The sectors dominated by growth stocks includeHigh-tech index ETF-SPDR (XLK.US) $、$SPDR non-essential consumer ETF (XLY.US) $和$Communications Services Select Industry Index ETF-SPDR (XLC.US) $。
The sectors dominated by value stocks include$SPDR Financial Industry ETF (XLF.US) $、Industrial Index ETF-SPDR (XLI.US) $、$SPDR Energy Index ETF (XLE.US) $和Selected daily consumer goods industry index ETF-SPDR (XLP.US) $. Kostin said growth and value deals will consolidate horizontally for the rest of 2022.
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