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Astoria's John Davi: Why the Market Is Headed for a 'Big, Fat Correction'


Published on 2025-02-11 18:01:18 - MSN
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  • The next-generation portfolio advisor is a fan of diversified investing, which means he's no fan of the Magnificent Seven-heavy S&P 500.

John Davi, the founder and CEO of Astoria Portfolio Advisors, has expressed concerns about the U.S. stock market, predicting a significant correction due to several economic indicators. He points out that the market's current valuation, with the S&P 500 trading at 21 times forward earnings, is excessively high, especially when compared to historical averages. Davi highlights the disparity between the performance of large-cap tech stocks and the broader market, suggesting that this divergence is unsustainable. He also notes that the Federal Reserve's monetary policy, particularly the potential for prolonged high interest rates, could exacerbate market volatility. Additionally, he mentions the impact of rising Treasury yields, which could divert investment away from equities. Davi advises investors to prepare for a market correction by rebalancing their portfolios, focusing on sectors like energy, utilities, and healthcare, which he believes are more resilient in a downturn.

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[ https://www.msn.com/en-us/money/economy/astoria-s-john-davi-why-the-market-is-headed-for-a-big-fat-correction/ar-AA1yQuN5 ]