Krawez: Investors are Overindexed to Tech

April 15, 2024

Consumer spending is strong, inflation remains sticky, and the job market is robust. All of this serves as a backdrop as earnings season gets underway. Brian Krawez, president and lead portfolio manager at Scharf Investments, recently spoke with Katie Pilbeam of Reuters TV’s Market Insight program and shared his thoughts on the economy and current market environment. He also expressed concern over the dominance that tech stocks and “tech-like” stocks have in today’s market. With these stocks comprising 41% of the S&P 500—well above levels seen during the tech boom of 1999—investors are overindexed to technology. He reiterated a key theme for 2024—the revenge of the average stock. If investors are willing to look outside of the mega-cap tech names, he believes those average stocks are poised to outperform. In fact, it’s worth noting that the average stock in the S&P 500 outperformed both the Index and the “Mag 7” stocks in March.

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