Trading a tech-dominant market — Insights from an investing champion — Why value isn't dead

Dear Readers,

It's a tech stock world and we're all just living in it. Look no further than the last couple weeks of market action for evidence of that.

Pushed to record-setting extremes, tech shares finally showed signs of vulnerability, and dragged the whole market down with them. Subsequent attempts at recovery have also been led by the tech cohort.

The equity-strategy team at Morgan Stanley thinks these sharp, concentrated price swings have created dislocations in the market — and thereby opportunities for investors. In a recent note to clients, the firm argued that the drivers of the stock market's record-setting summer have been completely reshuffled, and laid out three foolproof strategies to take advantage.

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Tom Lee of Fundstrat Global Advisors — who called the stock market's swift summer recovery from multiyear lows — also has views on the rattled market landscape. He sees nine bullish forces pushing stocks higher from current levels, and even has a basket of stocks designed to benefit in particular from that rally.

Andrew Slimmon, a senior portfolio manager at Morgan Stanley Investment Management, recently urged tech investors to stay the course through volatile times. He also revealed to Business Insider where he's finding opportunity in the sector, which is now oh-so-slightly more attractive on a valuation basis.

And for those looking to get ahead of the inevitable next stock downturn, James DiChiaro — co-manager of the $1.3 billion BNY Mellon Core Plus fund — has a bond-focused hedging strategy ready for deployment.

Going beyond this smorgasbord of actionable advice, see below Business Insider's best Investing stories of the week. They include a wide array of additional recommendations, strategies, and tips for navigating uncertainty.

Thanks for reading!

— Joe

Exclusive strategy and 3 stock picks from an investor up 359% through July

Oliver Kell, a US Investing Championship contender, pieced together his trading strategy by borrowing tactics from the most renowned investors. He's in third place in the 2020 competition, with a 359.4% return through July.

Kell refers to his trading methodology as a "techno-fundamental trend follower" and looks to trade companies that are changing the world as we know it. He listed three stocks that have helped contribute to his extraordinary performance.

Read the full story here:

US Investing Championship contender Oliver Kell raked in a 359.4% return through July. Here's the strategy he's using to crush the competition — and 3 stocks he's holding right now.

Why value investing isn't dead — at least according to one expert

Bernstein strategist Inigo Fraser-Jenkins argued recently that record-low inventory levels could snap back and support value stocks. He and his team outlined a three-part value trade to take advantage of the potential reversion.

Read the full story here:

Bernstein breaks down why value investing is not dead — and shares its 3-part strategy for buying cheap stocks before they break out higher

Stock pick central

Seeking experts who are willing to name names? Look no further:

  • Buy these 16 tech stocks that are beaten down from the pandemic and now primed for explosive growth in the months ahead, Stifel says
  • UBS says buy these 17 'superstar' stocks poised to soar as they use AI technology to drive market-beating growth
  • Buy these 30 stocks that offer the best bargains for strong sales and earnings growth in a pricey market, Credit Suisse says

Quote of the week

"We're starting to see that some of these cyclical sectors are starting to come to life. I think these reopening stocks have more upside to them than do the Nasdaq and the big tech stocks."

— Andrew Slimmon — a senior portfolio manager at Morgan Stanley Investment Management — discussing where he sees opportunity within the tech sector, on which he's broadly bullish

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