Yahoo Finance

our next guest saying that the dip buyers came in for the sale yesterday, but will the buying continue? Joining us now, we've got here on set live and living color, Kenny Polcari, Slate Stone, wealth chief market strategist. Great to see you here, Kenny. And thanks for taking the time.

Thanks for having me.

So, as we're thinking about some of the dip buying opportunities that some investors are trying to take advantage of right now, what what are you kind of lining up and where you would be putting additional chips on the table?

So, I think you have to take a broader a broader look at where we think the market's going over the next six or seven weeks, just because we're in that seasonally weak time in the market, August through October. Um I think that I think that the August lows of 5116 are likely going to be tested again, which means that, you know, as an investor, as a long-term investor, you just need to be a little bit cautious. But look, key names, Nvidia that's down 25% off its June high is a place that I would actually be putting I would put money to work there now.

Do you think it rallies back to the high?

Yeah. Well, I don't think it rallies back to the high, but I think it it's on sale 25%. As a long-term investor, I'm not a trader, so I'm not looking for it to rally two, three two points or 10 points and then sell it. I'm in there to buy it, to hold it, right? But when something goes on sale at 25% down off the recent high, then you have to at least look at it. Now, if you're if you're worried about further downside for the broader market and you think it's going to get dragged with it, well, then just sit back a little bit and wait. I think, you know, for most of the clients, that's the conversation I'm having uh just about being patient, right? Because patient in this case could be a virtue.

Kenny, what do you think the outside influence is going to be for Nvidia, looking forward for the broader market? And I bring that up because we were talking to City's uh Scott Croner earlier in the show, and he was talking about that shift that we certainly have started to see over the last couple of months. Does that continue?

Yeah, I listen, I think I think it's a little bit overdone, that shift that everyone's worried about. Look, I think we're at the very infancy stages of AI. I think Nvidia sits at the nexus of of this tech revolution that's happening. Nvidia for me is a key name, right? Now, do I think there's going to be fits and starts and is it's a high growth name, so it's got lots of volatility in it, absolutely. But over the long term, I think Nvidia is just a core name and a core portfolio. And I think investors have to take depends again on who they are, what their time frame, are they a trader looking to day trade or are they an investor looking for a good entry point to either add to or initiate a position.

We're looking at consumer discretionary this morning, one of the leaders here, and it's jousting with technology right now here, at least during today's trading session. When we think about the consumer though, right now, there have been flashing warning signs, especially ahead of what is either going to be a soft landing, a hard landing, a potential recession. How should investors be thinking about the consumer with relation to some of that discretionary spending in the stocks that that will show up in?

So, I'm much and this to that point, I'm much more about consumer staples than I am about discretionary, because I think the consumer is stretched. I think the consumer is going to run into problems. I think we're already seeing consumers run into problems. We're seeing people live on credit cards, and discretionary is just that. It's discretionary spending. Those are wants versus needs, right? So, I would be cautious on that sector at the moment, uh and I'd be more focused on the staple sector. While it's boring and not sexy, I think it'll it plays it plays nicely in an environment where you think it's going to be a little bit of a pressure uh on the broader market and on the consumer.