In the world of investing, poor breadth in the market is creating buying opportunities, according to Charles Schwab’s Liz Ann Sonders. Sonders, the chief investment strategist at Charles Schwab, believes that weakness in individual stocks is actually presenting opportunities for investors.
Despite the overall resilience seen on the index level this year, Sonders pointed out that there is poor breadth below the surface. She noted that a greater share of constituents in the Nasdaq Composite are below their 200-day moving averages compared to the S&P 500. This disparity could mean that the Nasdaq has the potential to outperform the S&P 500 in the future.
Sonders advised investors to focus on quality companies with strong balance sheets and cash flow when looking for individual buying opportunities. She emphasized the importance of staying high quality in their investment choices.
In a separate development, EMJ Capital’s Eric Jackson believes that Nvidia is set to continue its impressive performance. Jackson predicts that Nvidia’s forward price-to-earnings ratio could reach close to 70 and its market cap could surge to $6 trillion by the end of the year. He sees the company taking advantage of its lead in the industry and expects its stock to continue its upward trajectory.
Meanwhile, stock futures were little changed on Tuesday following a rebound in the S&P 500 from a three-session slide. Futures tied to the broad market index were down slightly, with Nasdaq 100 futures also pulling back. Dow Jones Industrial Average futures slipped slightly as well.
Overall, the market continues to present opportunities for investors, with experts like Sonders and Jackson offering insights into where potential gains could be found. It will be interesting to see how these predictions play out in the coming months.
