Blackstone’s Byron Wien said the selloff in technology stocks was long overdue after their robust rallies during the coronavirus pandemic.
“I don’t think we’re beginning a bear market. I think this is a correction, at most,” Wien told CNBC.
“The internet and FAANG-related stocks were very fully valued based on my projections of earnings in 2021 or even 2022. So this correction is not really unexpected. ... This is just a pullback from what is basically a strong recovery market.”
Wien, the vice chairman of Blackstone’s Private Wealth Solutions group, pointed to the energy and transportation sectors, both of which have been beaten up as a result of the COVID-19 outbreak.
“I think the real opportunities in the market are in some of the stocks that are in some of the more distressed areas. I think energy is probably attractive, and if you can believe that transportation will ultimately recover, you can take the risk there,” he said.
“Some manufacturing stocks, materials stocks, these companies are very reasonably priced assuming that we get back to normal sometime in the next year or two,” he said.
U.S. stocks closed lower for a third straight session on Tuesday as heavyweight technology names extended their sell-off to send the Nasdaq into correction territory, while Tesla suffered its biggest daily percentage drop after the stock was passed over for inclusion in the S&P 500, Reuters reported.
Each of the 11 major S&P sectors were lower, led by declines in technology and energy. Reports on Friday that SoftBank made significant option purchases during the run-up in U.S. stocks added to investor nervousness.
Technology once again dragged indexes lower with a drop of 4.59%, the third straight decline and worst three-day performance for the sector since mid-March. Even with the recent drop, the sector remains the best performer on the year.
"Things got expensive, they ran up, they got very concentrated and people got really giddy," said Willie Delwiche, investment strategist at Baird in Milwaukee. "Everyone is all loaded up on one side, it doesn’t take much of a ripple to knock some apples off the cart."
© 2026 Newsmax Finance. All rights reserved.