The best investments when dealing with a global sell-off

The major indexes (^DJI,^GSPC, ^IXIC) are sinking after July's weak jobs report stoked recession fears. Zacks Investment Management client portfolio manager Brian Mulberry joins Wealth! to break down the movement and how investors can best navigate the sell-off. "The market's been a little bit overdue for a pullback like this," Mulberry argues. Amid the sell-off, he encourages investors to focus on companies with high-quality balance sheets, multiple revenue streams, low levels of debt, and good cash flow metrics. He points to consumer staples (XLP) as good investment opportunities, highlighting names like Walmart (WMT) and Coca-Cola (KO) since "being concentrated on quality is how you're going to survive this particular sell down in the market." As major tech stocks have dipped amid the global market sell-off, Mulberry believes that the companies actually monetizing AI will be in a better standing among competitors. "The dividing line is going to be, 'what is your business model?' There's been an enormous amount of investment from all of those companies in this type of technology. But who's actually closing the loop and generating revenue from AI?" he explains. He points to Microsoft (MSFT) as one of those names as it generates revenue from its subscription service that allows users to access ChatGPT through the Microsoft Office suite. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Melanie Riehl Read More...