Jeffrey Bierman warns a market correction is looming as stocks and bitcoin surge on hype. He says shifting funds to undervalued sectors could prevent a sharp selloff.
October 4, 2025
Source:
MarketWatch
Market Correction Warnings
Stocks and bitcoin are advancing on what analyst Jeffrey Bierman describes as "fumes and FOMO." Bierman, a veteran trader and finance professor, cautions that the rally could falter as early as October, putting markets at risk for a typical 5% correction.
Contributing Risks
Excess liquidity from the Federal Reserve fuels an unsustainable rally.
AI optimism adds to price bubbles in technology and growth stocks.
Gold’s surge points to persistent inflation and flight to safety.
Bierman’s analysis, featured in outlets like Morningstar and CryptoCraft, highlights a fragile market underpinned by speculative sentiment. He sees critical S&P 500 levels below 6,530 and 6,350 as likely triggers for technical sell programs. Support is seen at the 5,700 mark.
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Source:
MarketWatch
Strategy: Diversify into Undervalued Sectors
Bierman asserts that the heavy concentration in popular sectors makes the market vulnerable. He recommends sector rotation—directing investments toward areas overlooked in the recent rally.
What are "Unloved, Cheap Sectors"?
Industrials
Energy
Regional banks
Non-tech cyclicals
These areas often show lower valuations and missed out on AI-driven gains. Diversification here could buffer market volatility and reduce the risk of broad selloffs, according to Bierman.
More on sector performance can be reviewed at Morningstar.
Read More
Source:
The Wall Street Journal
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