Yahoo Finance

Market volatility continues heading into the president's so-called liberation day. So how should investors reposition, if at all, amid the market sell-off? It's time for our weekly FA corner brought to you by Capital Group. I want to bring in A deal Zaman. He's Wall Street Alliance's group partner. It'll be great to speak with you here. I know that you work with private wealth management. You advise clients all the time about this. What is the single biggest question that you are getting right now?

Uh, I think people are not used to the pullback, right? The market's been shooting up, but we've been prepping our clients and we've been telling them it cannot go up in a straight line for, and last time I was on Yahoo Finance, we were talking about the same thing that there's going to be a lot of policy changes that the market has to get used to. And I think what the market got wrong was the pain threshold for Trump because their idea right now is in the next two years, before the midterm elections, implement as many policies as possible. And I think we are telling clients, you know, just be prepared. There's going to be more to come.

So do you think their pain threshold matches the president's and then more importantly, what do they do? What are you gonna What do you see them trying to knee-jerk react to do with their portfolios that you advise them not to?

Well, we actually prepped ahead of time, right? For this, and what we've been talking about is investors were overweight tech, like heavy tech exposure. And what we've been telling people is improve the breadth in your portfolios. Tech is a bit overvalued right now. When the pullback happens, that's the area of vulnerability. The area of opportunity is things like utilities, energy, financials, the relative value areas of the market. So we've been improving the breadth on the portfolio. We've also been buying gold, which has shot up. So that sort of balanced out the portfolios on the downside. So that's what

Energy's the best performing sector this year, so it's a smart move.

Yes, absolutely. We think there's a lot There's legs to that. You know, there's Trump deregulation is going to help that space. I think he's going to scale back all of Biden's clean energy policy. So I think that sector continues to do well.

So then what's the best diversifier of them all, and what's the safest, right? You've got gold, you've got bonds, you've got financials, healthcare, energy, and then you've also got global, by the way, of those buckets. Which one do we like the most right now?

I think what we What we really want to do So we are overweight utilities. We are overweight financials again, sticking with utilities do well because demand for electricity goes goes up. Financials do well because of deregulation. So we are overweight that sector. But the biggest takeaway if we put on, if I put on the financial advisor hat, is to stay broad. Now, you will get an opportunity at some point when all these policies are flushed out. There will be an opportunity that there will be a pivot, and at that point, you can be more opportunistic back into some of the growth areas.

And final 30 seconds here. Are you buying big tech at any dip level? Is there any level where it starts to just look too attractive to ignore?

Uh, yes. So we do feel that certain You you want to be opportunistic at certain levels. You know, for example, Tesla right now has had a massive selloff. I think things like robotaxi and humanoid robots are good for their future. So potentially that stock could do well. I think the next move after Trump is done with tariffs is that he's going to cut income taxes, and that's going to cause the market to go up. So investors should be prepared for that.

Well, hopefully, the market is definitely looking for that policy dessert to come in the next half of the year. It'll thank you so much.