Equity markets are currently experiencing a broad-based decline, with major indices (^DJI, ^IXIC, ^GSPC) trading in the red as markets head into September – a month historically known for weakness. Keith Gangl, portfolio manager at Gradient Investments, talks to Market Domination about his market outlook.

Gangl assures that the current sell-off is no cause for alarm. Despite a 2% decline, the markets are still up 19.5% for the year. He attributes the sell-off to profit-taking and advises, in light of the upcoming jobs report: “I think everyone just needs to take a deep breath and watch what happens.”

With the Magnificent Seven technology stocks currently underperforming the S&P 500, Gangl believes it would be “smart” for investors to pull their money out of the big tech stocks and invest in other areas of the market. While he acknowledges the role these stocks play in driving market gains, he recommends investors maintain underweight positions given the current market dynamics.

“It is normal for the markets to decline. We would like to grow by 7 to 8 percent over the course of the year, but that is not how it works,” says Gangl.

Click here to watch the full episode of Market Domination for more expert insights and information on current market events.

This article was written by Angel Smith