These investments are being 'disguised' by Big Tech 'wreck'

Despite a global market sell-off in Monday's trading session, Fundstrat Global Advisors managing director and global head of technical strategy Mark Newton believes there are still healthy areas of the market. He joins Market Domination to discuss some of the investment opportunities overlooked during the day's market pullback. Newton points to the XLB healthcare sector ETF (XLB) as one opportunity for investors, as it has steadily grown in 2024 and hit record highs despite an ongoing sell-off since mid-July. He also highlights that equal-weighted industrials and financial ETFs from Invesco — (RSPN) and (RSPF) — both hit new all-time highs last week. He notes that these areas of the market are being "disguised" and "camouflaged" by the "Big Tech wreck." "Investors have been overexposed, have huge concentration in technology. So a big sell-off like that in an area which is a major focus certainly hurts," Newton adds. "But I would say that honestly, for those that diversify, there are plenty of parts of the market that are still working well. And now with a big breakdown on the dollar, that eventually is going to start to aid emerging markets when we can see a little bit of stabilization to this." Despite bitcoin (BTC-USD) having its worst week since November 2022, Newton argues that the movement is "really just a drop in the bucket" : "I don't see much more deterioration beyond really the mid to high 40s. And I think we will bottom and we can pull out of this. But it is going to be important for the broader risk asset space to stabilize. It's very unusual and unlikely to see bitcoin simply surge back to new highs if the rest of the world is falling apart. So we need to really see some effort and dollar-yen holding to see rates go down a little bit less severely." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl