With the benchmark S&P 500 Index now about 1.5% below its record high, defensive sectors including utilities and real estate were among the gainers at the end of last week.
The real test will be if value stocks can continue to outperform this week.
On Friday, August 7, 2020, the blue chip Dow Jones Industrial Average ended flat to slightly higher on the day while the tech-heavy NASDAQ Composite closed lower. The reason for this was likely a combination of the Non-Farm Payrolls report which showed a sharp slowdown in U.S., and concerns that lawmakers would not be able to agree on another fiscal stimulus bill to bolster the economy from a coronavirus-induced recession.
It’s not the time to reduce exposure to technology stocks, says Seema Shah, chief strategist at Principal Global Investors, but there’s also a case for “increasing allocation a little bit to some of the value space,” she said in an interview on “Bloomberg Surveillance.”