Raymond James Strategist Matt Orton Advocates Opportunistic Market Approach Amid Tech Sector Weakness

This analysis is based on the CNBC Power Lunch interview [1] with Matt Orton, Chief Market Strategist at Raymond James Investment Management, published on November 4, 2025. Orton’s strategy of using market downside opportunistically while “fading the frothiness” aligns closely with the actual market conditions observed on that date [0].

The market environment on November 4th provided a real-time validation of Orton’s concerns. Major indices experienced significant declines, with the S&P 500 closing at 6,771.54 (-0.25%), NASDAQ Composite at 23,348.64 (-0.47%), and Dow Jones Industrial Average at 47,085.25 (-0.13%) [0]. The technology sector, which has been a primary driver of recent market gains, showed particular weakness with the Invesco QQQ Trust falling 2.03% to $619.25 [0].

Sector performance data reveals a clear risk-off rotation pattern consistent with Orton’s strategy. Defensive sectors like Consumer Defensive (+0.64%) outperformed, while growth-oriented sectors declined: Technology (-0.49%), Consumer Cyclical (-0.59%), and Financial Services (-0.74%) [0]. This rotation supports Orton’s thesis about reducing exposure to frothy areas while finding value in market weakness.

Orton’s “frothiness” commentary appears well-founded when examining current market valuations. The S&P 500 P/E ratio stands at 28.52 (SPY ETF), NASDAQ at 34.92 (QQQ ETF), with individual technology names showing even higher multiples [0]. NVIDIA’s significant decline of 3.96% to $198.69 (P/E: 56.45) exemplifies the pressure on overvalued technology stocks, while Apple’s modest 0.37% gain to $270.04 (P/E: 36.15) suggests selective pressure within the sector [0].

Orton’s opportunistic approach aligns with Raymond James’s broader 2025 strategy, which has advocated for a selective approach to technology investments amid AI narrative dominance, emphasizing diversification benefits working better than in recent years, and focusing on lagging areas such as small caps, cyclicals, and international markets [2]. This suggests his “fade the frothiness” approach is part of a longer-term strategic shift toward value and diversification rather than a short-term tactical move.

The recent market volatility, with the S&P 500 down approximately 1.7% over the past five trading sessions [0], creates the “market downside” opportunities Orton references. This environment allows selective investors to acquire quality companies at more reasonable valuations, particularly in sectors that have lagged behind the technology-driven rally.

1. Valuation Risk
   : Elevated P/E ratios across major indices suggest vulnerability to earnings disappointments or interest rate changes [0]
2. Concentration Risk
   : Heavy reliance on mega-cap technology stocks for market returns creates potential for sharp corrections
3. Policy Uncertainty
   : Potential changes in Federal Reserve policy could significantly impact current valuation levels
4. Geopolitical Factors
   : Ongoing international tensions could affect market sentiment and sector performance

1. Federal Reserve Policy
   : Any changes to interest rate expectations could significantly impact valuations, especially in growth sectors
2. Earnings Season Results
   : Q3/Q4 earnings will test whether current valuations are justified across different sectors
3. Sector Rotation Patterns
   : Continued movement from growth to value could signal broader market regime change
4. Volatility Index (VIX)
   : Rising volatility levels may indicate increasing market stress and potential opportunity windows

Orton’s strategy suggests a more defensive, value-oriented approach may be appropriate in the current environment. However, investors should consider their individual risk tolerance, time horizon, and the need to maintain appropriate portfolio diversification when implementing opportunistic buying strategies during volatile periods.

The market conditions on November 4, 2025 provided a practical demonstration of Matt Orton’s strategic framework. The divergence between declining technology stocks and outperforming defensive sectors validates his call to “fade the frothiness” while using market weakness opportunistically [0, 1]. Current valuation levels, with the S&P 500 at 28.52 P/E and NASDAQ at 34.92 P/E, suggest that selective opportunities may emerge during market pullbacks, particularly in sectors that have lagged behind the technology rally [0].

The analysis suggests that investors should maintain a balanced approach, reducing exposure to overvalued growth areas while remaining prepared to acquire quality companies at more attractive valuations during market declines. This strategy aligns with broader market trends showing increased volatility and sector rotation patterns that favor value-oriented investments over momentum-driven growth stocks [0, 2].