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Tech Stocks and Market Volatility: Bhavik Mehta on Century Conversations

Market Volatility and Tech Stocks: Bhavik Mehta's Take | Century Financial

In Conversations

Century Financial's Deputy Head of Research Bhavik Mehta joins Century Conversations to make sense of a jittery market: a sharp tariff-driven dip that snapped back fast, and a rally led once again by big tech. He frames market volatility as the new norm, and the discipline is to stay diversified with one eye on the exit.

Volatility and the Bounce: Signal or Noise

  • Mr. Mehta frames the tariff shock and rapid recovery as part of a bigger political and structural shift, one that creates volatility but also opportunity.
  • With a large share of US household wealth tied to equities, he argues any administration is highly sensitive to sharp market declines, which shaped the tariff pause and softer tone.
  • His mantra is long-term investing and dollar-cost averaging, while keeping one eye on the exit if conditions turn.

Why Tech Is Leading Again

  • Mr. Mehta expects big tech and AI names to keep driving the cycle, helped by brands investors use daily and can therefore relate to as stocks.
  • Deep cash reserves and heavy AI and cloud investment, he argues, make the largest tech firms a perceived safe zone, able to outspend and acquire emerging rivals.

Takeaways: New and Experienced Investors

If you are newer, don't let a fast bounce pull you in without a plan. Diversify, average in over time, and research before every position rather than chasing positive sentiment.

If you are experienced, the read is that momentum and quality can be available simultaneously, but a crowded rally still needs exit discipline and an eye on where the leadership is genuinely earning it.

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Bottom Line

The rebound was robust, but Mr. Mehta's message is to treat volatility as the baseline, not the exception. Diversify, do the research, and keep one eye on the exit. Watch the full conversation above.

(Points reflect the guest's views at the time of recording and are not to be considered as investment advice.)

FAQs

Mr. Mehta argues that cash-rich, dominant tech firms are widely viewed as a safer bet, though he still stresses diversification and research over concentration.
It stands for investing set amounts over time rather than all at once, which Mehta recommends to add exposure through volatility instead of trying to time the market.
Mr. Mehta's approach is long-term investing, diversification, and dollar-cost averaging, while staying alert to market reactions and keeping an exit plan in mind.
It describes staying invested for the long term while remaining ready to act if conditions deteriorate, rather than assuming a rally will continue unchecked.

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