Stocks Diverge as Bond Yields Rise | Your Money 3-19-21
As the outlook brightens, money managers are moving out of government bonds and technology stocks and into sectors such as banks and energy that are likely to rebound with the economy.
In the latest episode of Your Money, Leo Daprile of Gem Young Insurance and Financial Services in Canfield says 2021 has been a more challenging year for money managers.
“A lot of these tech companies that were really driving growth last year, the reason their stocks are starting to take the hits that they are, has more to do with people are starting to say, ‘well, maybe I’m going to go back to the mall. Maybe I’m not just going to buy on Amazon,’ ” says Daprile.
The Dow Jones is up 3.9% for the year, Daprile says, but the NASDAQ is down 7.2% and the NASDAQ 100 is down 7%.
Apple represents 11% of the NASDAQ 100, “so although this was a fun ride for people last year, this is why being prudent and knowing what to own and knowing when to sell it and knowing where your sectors are going to move is so important,” Daprile says.
Meanwhile, the bond market is beginning to pull off.
“That’s optimism driven,” he says.
“When you see a lack of interest in bonds, it’s because there became and interest in something else.”
Original Air Date: March 9, 2021. Every Tuesday during the Dan Rivers show on AM570 WKBN, Gem Young President Leo Daprile hosts a radio show called Your Money. Daprile brings his vast knowledge of all things “money” to discuss the topics in language everyone can understand.
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