Looking to invest after the pullback? Strategist names stocks in AI, defense and more

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'I continue to advise clients to use downside opportunistically and build better balance in portfolios,' says Matt Orton of Raymond James Investment Management.

Some investors might be shopping for stocks, given the recent market pullback. In late July, both the S & P 500 and the Nasdaq dived to a low not seen since 2022 before rebounding. Global markets — including the U.S. — sharply sold off in early August before bouncing back. However, Matt Orton of Raymond James Investment Management cautioned that the path forward may be bumpy again.

0: Spending on AI has been a strong theme, with companies maintaining or increasing their capital expenditure. Orton says he's focusing on beneficiaries of such spending, like electrical equipment, electrical utilities and machinery in "actual construction," which have become attractive after the recent sell-off. Aerospace and defense: Orton says he's seeing more international demand in this area.

 

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