On Tuesday, the Nasdaq fell nearly 4% over the past week and the 10-year Treasury yield jumped to its highest level since 2023. The Gram index was lagging again in midday trade. However, some wealth managers said this could be a minor correction in the market rather than the start of a downturn. Josh Brown, CEO of Ritholtz Wealth Management, sees the sell-off as an example of tax cuts being delayed. In this way, investors are delaying the big gains in technology stocks until early 2025 instead of late last year. “There’s a massive wealth management-driven move happening here, and it’s 100% related to private clients telling their advisors, don’t you dare pay me your tax bill in the last two weeks of the year. We’re taking away a huge amount of Nasdaq’s money. Gains will come as early as next year,” Brown said on “Halftime Report” on Monday. .IXIC YTD mountain The Nasdaq Composite Index is off to a rocky start in 2025. Worry about this sell-off. Smith said he has been selling bonds and buying into cyclical areas of the market, such as small-cap energy stocks, in anticipation of a longer-term higher interest rate environment. “I don’t think there’s anything bad about it. I just think it’s more about the new regime that we’re going to be in, and the reason we’re in this new regime is because we haven’t killed the inflation dragon, and that’s okay,” Smith said . David Waddell, CEO of Waddell & Associates, is somewhere in between. He said potential tax cuts have driven some of the recent moves he has made for clients, but he believes rising yields also played a role in tech stocks’ woes. He pointed to strong performance in value-focused areas of the market on Monday as a good sign that the sell-off was not the start of something bigger. “The most important question to answer is ‘Do you think we’re going to be in a recession?’ If the answer is ‘no,’ then we’re going to go through this digestion period,” Waddell said.
