But I think this is a good time for investors to get in on some good prices. You're the manager of a balanced fund. But I think if you're a nervous investor, then a balanced fund is a good way to move some cash back into the market, because the balanced fund will typically be less risky than an all-equity fund. You want to be exposed to sectors that are going to benefit most directly and immediately from the Fed's recent rate cuts. These sectors include retail, entertainment, and some health-care stocks, as well as finance.
Technology is a sector that has been roaring back very dramatically.
But I think the Fed's actions will have a muted effect on the fundamental issues that face many of the tech-sector stocks. For most of the tech sector, I'm concerned with the end-market final demand over the next three to five quarters. However, within tech, I think the data-storage companies still have a very strong secular outlook. The rest is cash. I still think there are many attractive opportunities in that sector.