The Dip Investors Were Waiting for May Have Arrived

Core Viewpoint - The recent market downturn, particularly in the Nasdaq-100 and S&P 500, was driven by President Trump's threat of 100% tariffs on China, resulting in significant losses for major tech ETFs like QQQ and QQQM, which collectively lost $770 billion in market capitalization in one session [1]. Group 1: Market Reaction and Opportunities - Despite the sharp decline, experts suggest that this may not indicate a bear market or a full correction, and could present buying opportunities for investors [3]. - Investors who are under-allocated to equities are encouraged to phase in and utilize market dips to increase exposure to preferred sectors, particularly in structural growth themes like AI [4][7]. - The chief investment office of UBS highlights U.S. tech stocks as a preferred investment area, which is significant for QQQ and QQQM given their substantial exposure to the tech sector [5]. Group 2: Investment Strategies - A disciplined approach to gradually increasing stock exposure or balanced portfolios may help mitigate risks associated with poor timing and emotional decision-making, while also capitalizing on market dips and rebounds [6]. - UBS believes that lower interest rates, strong earnings growth, and AI trends will support further gains in global equities over the next year, reinforcing the case for investors to consider increasing their stock allocations [7].