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Source: Harvard Health Publishing

If last week's technology sector-led selloff in the stock market made you nervous, experts suggest considering it as an opportunity to rebalance your portfolio.

The Nasdaq Composite index (IXIC), a technology-heavy index often used as a barometer for the stocks in the sector, fell 5.7% last week, its biggest weekly loss since January 2022. Nonetheless, the index had gained 11% since the start of the year as of the end of last week, thanks to big gains for mega-cap tech stocks such as AI investor favorite Nvidia (NVDA), Apple (AAPL), Meta Platforms (META) and Amazon (AMZN), as well as several chip stocks.

Given the influence wielded by big-name tech stocks on the major stock indexes, many investors have overweight positions in them. The large-cap tech names are nearly impossible to ignore in your portfolio, whether through ownership of individual stocks or through exposure to diversified investments such as mutual funds or exchange-traded funds (ETFs.)

Here's what experts are recommending to their clients.

While 'buying the dip' in tech stocks may be tempting, stepping back and taking a look at your portfolio in its entirety could give you a better picture of your tech sector exposure. Furthermore, the recent volatility may be a good time to make some changes.

“We’ve been in the camp of rebalancing based on volatility, not necessarily the calendar,” Kevin Gordon, Director, Senior Investment Strategist at Charles Schwab. “If there’s a sector that gets so stretched and your exposure gets well beyond what it should be and what the target is, don’t be afraid to trim some of those profits and add it to other parts of the market where you're not as exposed.”

Monica Dwyer, a senior vice president and wealth advisor at Harvest Financial Advisors, said while it may be psychologically difficult for some investors to sell assets that are performing well, doing so can pay off in the long run.

“Rebalancing is a natural way of buying low and selling high,” Dwyer said. “If you’re disciplined about it, you’re always going to be selling what is overweighted in your portfolio, which is the stuff that's done well, and buying the stuff that doesn’t do well… It’s human nature to hold something that has risen and never want to let it go.”

But if you’re moving away from tech, where do you put that money?

“So we're starting to rebalance our clients’ portfolios, taking that outperformance from growth [stocks] and reallocating back into value [stocks],” said Jared Gagne, a Private Wealth Manager at Claro Advisors.

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Air Canada said Monday that it is making plans to shut down most of its operations if its pilots go on strike later this month.

The country's biggest air carrier warned that while contract talks with the Air Line Pilots Association (ALPA) continue, the two sides "remain far apart." Air Canada said if no deal is reached, beginning on Sunday either side could issue a 72-hour strike or lockout notice. It noted that would trigger its three-day wind-down plan that would progressively suspend all flights by Sept. 18.

The union represents more than 5,200 pilots for both Air Canada and Air Canada Rouge. 

Chief Executive Officer (CEO) Michael Rousseau said that the ALPA's salary demands "far exceed average Canadian wage increases," and that unless the union "moderates" them, a shutdown is "increasingly likely."

At a rally late last month, Air Canada ALPA Master Executive Council chair Charlene Hudy accused the airline of "not listening to our most pressing needs at the negotiating table regarding fair compensation, respectable retirement benefits, and quality-of-life improvements."

Air Canada said that it has been negotiating with other air carriers to get its customers seats on their planes if a strike or lockout occurs. It added that passengers whose flights are canceled will be able to receive a full refund, and that they can reschedule trips set for Sunday through Sept. 23 at no charge. It said that window may be expanded if necessary.

Air Canada shares were down nearly 2% Monday afternoon on the Toronto Stock Exchange (TSX).

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Starbucks (SBUX) officially has a new chief executive officer (CEO) as of Monday, as Brian Niccol joins the coffeehouse giant after announcing his departure from the top job at Chipotle (CMG) last month, with Starbucks looking to turn around the performance of its recent disappointing quarters.

Niccol also will have to contend with pressure from activist investors who recently have taken stakes in Starbucks and engaged with the company on plans to improve its stock price and sales, which have struggled both in the U.S. and internationally in recent quarters. Analysts largely cheered the move for Starbucks, with several stating that they believe Niccol was a key piece of Chipotle's success and significant growth during his tenure there as CEO.

Same-store sales have declined in Starbucks' two most recent quarters as Americans have cut discretionary spending while facing higher prices for essentials. Starbucks and a number of other fast-food giants have launched value promotions in recent months to win customers back.

Last month, Starbucks also announced the earliest-ever debut of its fall lineup—including the popular pumpkin spice latte—weeks ahead of the official start of fall to boost sales.

Activist investors Elliott Investment Management and Starboard Value have each reportedly bought stakes in Starbucks, helping boost the company's stock. The firms haven't publicly disclosed their plans for Starbucks, but Elliott issued a statement celebrating the hiring of Niccol and said it has "engaged with Starbucks' board" over what it believes are the company's "key issues."

Previous reports indicated that Elliott had proposed measures before Niccol was hired, like expanding Starbucks' board as part of a settlement package that would have kept Laxman Narasimhan in his role as CEO. Starbucks stock jumped roughly 25% the day Niccol's appointment was announced, which could have allayed some of the activist investor concerns.

Starbucks' same-store sales dropped by 14% year-over-year in China in its latest earnings report in July, with foot traffic and average ticket both declining in the quarter. China, together with the U.S. comprises 61% of Starbucks' business.

The chain has faced increasing competition from domestic coffee operations, and also has been one of a number of companies that have said China's post-pandemic economy is proving to be a challenging operating environment.

Starbucks shares were up nearly 0.9% recently on Niccol's first day on the job at $91.94.

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Apple (AAPL) is expected to unveil the iPhone 16 at an event on Monday — and that's lifting shares of Arm Holdings (ARM).

The chip designer's stock gained 5% as investors prepared for Apple’s “It’s Glowtime” event, aided by a report that the iPhone 16 is expected to run on a chip based on the Armv9 CPU.

Arm’s chip designs are expected to play an important role in the IPhone’s 16 use of generative AI, the report said. 

Shares up Arm have gained more than 60% in 2024 thanks in part to the growth of Armv9 technology. Chips based on Armv9 technology made up roughly 25% of the firm’s royalty revenue in the second quarter, up from 20% a quarter earlier.

Here's what to expect from today's Apple event. Apple's shares were recently edging lower.

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A former Gombe United player has revealed why he prefers playing in Afghanistan over Nigeria.

The player who formerly played in the NPFL for Gombe United and Wiki Tourist and he was earning 300k and 200k respectively but in Afghanistan he earns 2000 euros per month, he lives in a hotel paid for by the club plus feeding. He is coming to Nigeria now with over 20k euros after the season ended.

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