LIVE MARKETS-Wren: Post-midterm volatility offers opportunity

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WREN: POST-MIDTERM VOLATILITY OFFERS OPPORTUNITY

Last week's post-midterm market turbulence may have felt dramatic, but Scott Wren, market strategist at North Star Market Analysis, argues the broader investment outlook has changed little.

Wren says investors should view the recent selloff as a potential opportunity rather than a reason to abandon long-term plans. While concerns that a new Congress could slow AI-related infrastructure projects helped trigger a sharp selloff in technology shares, he sees the move largely as a repricing of a crowded AI trade rather than a broad warning about the economy.

The strategist notes that the S&P 500 .SPX remains only modestly below its record high despite the volatility. More importantly, history has generally favored investors willing to look beyond post-election uncertainty. Since 1974, the Nasdaq .IXIC has been higher one year after all but one midterm election cycle, according to Wren.

He also remains constructive on the economic backdrop. October payroll growth came in well above expectations, unemployment remains low, and Wren expects easing inflation to support consumer purchasing power.

For investors, the key message is to focus on portfolio construction rather than political headlines. While technology stocks, particularly AI-related names, may remain volatile in the coming months, Wren does not believe the election outcome justifies major asset-allocation changes.

His bottom line: stick with a disciplined investment plan and consider adding equity exposure gradually rather than all at once. Wren remains positive on the technology, industrials and financial sectors, arguing that US companies have a long history of adapting to political change while continuing to grow profits.

(Terence Gabriel)

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