New York Stock Exchange: Michael Landsberg, Principal + CEO at Landsberg Bennett Private Wealth Management joins LIVE on NYSE

April 1, 2025

“We think there’s going to be continued selling here, certainly in the high flyers, as uncertainty around tariffs continues to weigh on investor sentiment,”  says Michael Landsberg, Chief Investment Officer at Landsberg Bennett Private Wealth Management, during his appearance on NYSE TV. Landsberg outlined how tariff headlines, weakening consumer sentiment, and slowing earnings growth may contribute to further market volatility in the second quarter.

Key Takeaways:

  1. Tariff uncertainty driving market hesitation: Landsberg highlights that tariff headlines are dominating the conversation, creating uncertainty for investors and companies alike. He believes many investors are reluctant to deploy new capital into sectors highly exposed to tariffs.
  2. Earnings deceleration expected: While corporate earnings remain positive year-over-year, Landsberg expects growth to slow compared to previous quarters. He forecasts S&P 500 earnings to rise around 6% to 8%, with the Nasdaq likely posting gains of 12% to 13%, down from the double-digit growth seen last year.
  3. Conservative guidance anticipated: Landsberg predicts companies will use the ongoing tariff uncertainty and weakening consumer sentiment as reasons to issue cautious forward guidance during this earnings season. He expects this could increase market volatility and encourage further selling, particularly in sectors that have performed strongly in recent years.
  4. Rotation away from technology and discretionary sectors: According to Landsberg, sectors that saw the biggest gains over the past two years—such as technology and discretionary stocks—are now seeing the most selling pressure. He encourages investors to consider reducing exposure to these areas.
  5. Consumer resilience but signs of strain: Landsberg points out that, historically, U.S. consumers tend to spend even when facing economic headwinds. However, he is monitoring data points like mortgage delinquencies, which could eventually impact spending behavior.
  6. Recommends international and defensive positioning: He advises investors to diversify away from U.S. tech and discretionary stocks, noting that most new clients are underexposed to international markets. Landsberg favors European equities, which are showing signs of economic improvement, as well as defensive sectors like utilities, insurance, and consumer staples.
  7. Importance of diversification: Landsberg concludes by reminding investors to reassess their portfolios and not rely too heavily on the so-called “Mag Seven” tech stocks, suggesting a more balanced allocation to help ensure stability during market turbulence.

Landsberg cautions that as markets enter the second quarter, investors should expect elevated volatility tied to tariff policy uncertainty and slowing earnings growth. While fundamentals remain intact in certain areas, he emphasizes the need to rebalance portfolios away from concentrated high-growth sectors and toward more defensive and international exposures to help ensure stability in the months ahead.

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