Where to hide if you're worried stocks will go down this autumn
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Stocks sold off on Friday as investors looked to get out of the market ahead of what's historically the worst month of the year for equities, says José Torres, senior economist at Interactive Brokers.
Why it matters: We asked strategists where investors should hide if they're worried about stocks going down.
What they're saying: Here's how several strategists recommend investors ride out the historically rocky fall season.
- 💸 Get broadly invested outside of tech or the Magnificent 7 between now and Thanksgiving, writes tech bull Dan Niles.
- ⛏️ If you believe in the AI rally but want to get out of tech, look at utilities, the "picks and shovels" of AI, Mark Giambrone, head of U.S. equities at Barrow Hanley Global Investors, tells Axios.
- 👁️ Look at dividend paying stocks, which tend to have a floor beneath them and are about 85% as volatile as the broader market, Don Townswick, managing director and equity strategist at Conning, tells Axios.
- 💰 "Stick to fundamentals," writes John Belton, portfolio manager at Gabelli Funds, adding to focus on companies with strong momentum upward revisions to earnings estimates.
- 🌍 Think international: China was the leader of global stocks over the last two years and it's "early days" on the trade, writes Jay Pelosky, founder at TPW advisors, adding that he prefers China tech to U.S. tech.
- 🧠 Regardless of where you find value, be very diversified, several strategists said.
Yes, but: The "buy the dip" narrative that has provided a floor to the market this year could prevent a September dip from even being that bad, notes Gina Bolvin, president of Bolvin Wealth Management Group.
What we're watching: How investors react to any September volatility.
- Will investors seek safety in under-owned corners of the market?
- Or will any dips lead to buying opportunities for already overvalued names?
- The answer could help determine where the market heads in 2026.
