Stocks sank and the tech-heavy Nasdaq (^IXIC) suffered its biggest pullback since March on Tuesday, while bond yields (^TNX) rallied to a three-month high amid concerns over rising inflation and higher interest rates.
The market’s volatility index (^VIX), the so-called fear gauge, hit its highest level in at least five months, but that wasn’t enough to scare away "Shark Tank" investor and entrepreneur Kevin O’Leary.
“Volatility, I don’t love it,” O’Leary told Yahoo Finance Live, “but when it does happen, it lets me re-adjust. I don’t sell my stocks when there’s volatility, I try to find opportunity in it.”
The chairman of O’Shares ETFs also said talk of the death of the rally in mega-cap tech stocks has been greatly exaggerated.
“The productivity enhancement that is occurring in technology is the reason we have such a buoyant economy now,” he said. “I’m a big user of indexes, so for me, that means adding more to my technology portfolio, my enterprise portfolio, in digitalization, in retail, all of that."
O'Leary on crypto stocks: 'I'm looking for investments, not just coins'
He’s also adding more crypto-related assets to his portfolio. A long-time critic of cryptocurrencies, O’Leary is now a self-described crypto-convert, investing in the blockchain holdings startup, Immutable Holdings (HOLD.NE), which jumped more than 60% Tuesday in its debut on Canada’s NEO exchange. Immutable’s subsidiaries include 1-800-Bitcoin and NFT.com.
“I’ve been raising my position in the whole crypto infrastructure space from 3% – by year-end it’s going to be 7% of the portfolio,” O’Leary said. “I’m looking for investments, not just coins and tokens.”
Overall, O’Leary predicts the fourth quarter will be a volatile one for investors as moves by the Federal Reserve and policy decisions out of Washington, D.C., serve as catalysts for the stock market.
“At the end of the day,” he said, “it’s all noise. The economy is very healthy.”
Alexis Christoforous is an anchor at Yahoo Finance. Follow her on Twitter @AlexisTVNews.
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