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If you’re investing for the long haul, the best thing you can do is ride out this wave of volatility.
“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 vaccine is effective,” she said. “If cases are rising but hospitalization rates remain low, then the reopening measures from governments will continue.”
Still, Shah conceded, investors should be more selective. After all, the S&P 500 has nearly doubled from its pandemic lows in March 2020, and not all stocks and sectors will maintain their momentum.
She thinks defensive sectors might start to pull back a bit. Those include utilities, health care and others companies that pay big dividends and are considered good bond proxies.
The FAANGs and other big tech stocks, many of which have strong earnings momentum and tons of cash,…
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