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How to invest as the Delta variant takes hold

July 21, 2021. Summarized by summa-bot.

Compression ratio: 30.5%. 1 min read.

Trader Ashley Lara works on the floor of the New York Stock Exchange, Tuesday, July 20, 2021. Stocks are opening higher on Wall Street Tuesday as investors shake off a rout a day earlier brought on by concerns about the spread of a more contagious variant of COVID-19. (AP Photo/Richard Drew)

When the market is plunging like it did last Friday and on Monday, it's tempting to throw in the towel and sell. Big drops can be scary.

"Stay invested," said Seema Shah, chief strategist at Principal Global Investors.

Shah told CNN Business that the Delta variant is highly unlikely to stop the economic recovery in the US and other parts of the developed world where vaccination rates are high.

The FAANGs and other big tech stocks, many of which have strong earnings momentum and tons of cash, should continue to rally, she said.

Stocks may remain bumpy for the foreseeable future, but that shouldn't dissuade investors from sticking with their longer-term investments.

"If you are a long-term investor, take advantage of this volatility and add to positions in companies and sectors you really like," said Phil Orlando, chief equity market strategist at Federated Hermes.

He he belives stocks in cyclical industries that have gotten hit because of Delta variant fears could enjoy the biggest rebounds.

We love the economically sensitive sectors," Orlando added, saying that banks and other financials, industrial firms, retailers and energy stocks may come roaring back.

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by summa-bot

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