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Valuation Reset: Where Investors Should Look for Opportunity

A valuation reset has recently occurred in the market? What does this mean? More specifically, what does this mean for you? Scott Goginsky, CFA, Partner, Research Analyst and Portfolio Manager here at Biondo Investment Advisors, was recently asked to discuss this topic in-depth. If you’re worried about stock prices dropping and where to go from here, this is information you will want to know!

Table of Contents

  1. Watch Our Trade Talks Clip
  2. What is Valuation Reset?
  3. Look Long-Term
  4. Trust Biondo Investment Advisors

Watch Our NASDAQ Trade Talks Clip

Recently, Scott Goginsky, CFA (Chartered Financial Analyst) at Biondo Investment Advisors, was interviewed by NASDAQ’s Trade Talks to provide timely investment commentary. He was asked specifically to talk about his knowledge of where investors should look for opportunities now that valuations have been reset. 

This insight and expertise is exactly what you need in a market where The Fed has switched policy to higher rates and shrinking balance sheets. You can watch the interview here!

What is Valuation Reset?

A “valuation reset” is an investment term used to describe stocks that have seen massive growth in the past year and are experiencing a sharp drawback now1. In layman’s terms, it is just a big word for a mini-correction. A stock got a bit higher than it should have, and the market is correcting itself.

Look Long-Term

This is a healthy thing! A valuation reset is nothing to be alarmed with in the long-term. This is the market doing exactly what it should do, and one of the ways the Fed combats inflation rates. There’s evidence that inflation has finally apexed, a good thing for investors thinking long-term. 

There’s also speculation in regards to a global recession that may be looming, though experts disagree on this. As long-term investors, we like to zoom out and look at this as an opportunity. It’s time to look for companies and sectors where they aren’t as affected if people stop shopping in the face of a recession. 

Trust Biondo Investment Advisors

For help deciphering the current valuation reset as well as what your next steps should be, our financial advisors are here for you! We are a boutique wealth management firm providing comprehensive financial guidance to individuals, families, and businesses. 

We know what we’re doing, because we’ve been doing it for many years. This expertise is one reason we currently manage more than $830 million* of client assets. We conduct our own in-depth research into each company and their management practices before investing, in order to highlight market opportunities and build your trust. We encourage you to watch Scott’s interview with NASDAQ Trade Talks where he discusses valuation reset, then reach out to us.

1 My Wall Street Blog, (Adams, 2021)
https://mywallst.com/blog/what-is-a-valuation-reset/

* as of March 2022