Affordable Shares Suggested for Immediate Purchase, Says Expert Opinion.
After a record-breaking year in 2024, concerns about a possible market correction have surfaced due to high valuations and indicators signaling potential volatility. However, a recent analysis by Piper Sandler suggests that investors should remain cautious but not retreat from the markets.
Craig W. Johnson, Piper Sandler's chief market strategist, advocates that investors should not let the current fear-induced uncertainty deter them from participating in the market. While acknowledging increasing market volatility, Johnson emphasizes that there are still segments worth considering for their favorable and attractive prospects.
Value and small-cap stocks become Johnson's recommendations for investors, as they tend to carry less risk than the heavily tech-dominated S&P 500.
Similar views are shared by other analysts, who recommend looking beyond the tech sector in light of high valuations in the U.S. market.
For those seeking alternatives to tech stocks, alternative investments such as private credit, private real estate, and hedge funds are enjoying a boom in popularity in 2025. Private credit, in particular, has seen substantial growth, attracting investors with its income-generating potential and diversification benefits.
Liquid alternatives, encompassing strategies like private equity, real assets, digital assets, and alternative investment strategies, have gained prominence as a means to diversify portfolios beyond traditional stocks, bonds, and cash.
Some selective tech stocks still show strong growth and momentum, like Consensus Cloud Solutions, CleanSpark, and certain quantum computing firms. However, experts advise diversifying from concentrated tech risks, suggesting selective exposure instead of broad allocation.
Real assets and private markets also continue to attract investors seeking stable cash flow and lower correlation to public equities. These include infrastructure, commodities, and real estate sectors tailored for private investment.
In summary, experts advise investors seeking alternatives to potentially volatile tech stocks to explore segments such as alternative investments, liquid alternatives, and select high-quality tech stocks with promising growth prospects. This balanced approach aims to retain growth and income opportunities while mitigating risks related to tech's high valuations.
Investors, such as Craig W. Johnson from Piper Sandler, suggest maintaining a cautious stance in the market, yet not pulling out entirely, given the concerns about a market correction. Johnson recommends considering value and small-cap stocks, as they may carry less risk than the heavily tech-dominated S&P 500. Alternatively, analysts also advise looking beyond tech stocks, with alternative investments like private credit, private real estate, and hedge funds seeing a boost in popularity in 2025.
