As the S&P 500 slides 3.1% and the Nasdaq Composite goes down 3.5% over the last week, Bernstein analysts suggest this downturn marks an exclusive chance to invest in premium stocks at reduced prices.

Market Trends Driving Investment Opportunities

• Shifting Factors: Investors are pivoting from momentum and growth stocks towards emphasis on valuation, dividend yield, and return on equity (ROE).
• Increasing Recession Fear: Growing concerns about economic slowdowns create an environment favorable to quality stocks.
• Bernstein’s Risk Aversion Signal (RAS) is nearing a risk-off threshold, indicating rising investor caution, which historically favors quality stocks.

Bernstein’s