After the first quarter of the year, some investors wondered: Will technology stocks recover? What will markets do in response to future geopolitical shifts? How should I invest in AI and tech names going forward?  

As geopolitical conflicts continue, Credent’s Investment Management Team is analyzing the markets and monitoring the rebound of the technology sector, the continued strength of the small- and mid-cap spaces, the rhetoric around the AI trend, and the state of the economy.  

Here are three things for investors to know: 

1. The Market’s Answer to “Will Technology Stocks Recover?”

The tech sector struggled in the first quarter of 2026 (down over 12-13%), leaving some people questioning: Will technology stocks recover?  

In April, they got their answer. The tech sector experienced a resurgence, up 17%. 

As tech names re-find their footing, the question becomes: “Should investors jump in with both feet?”   

While participating in sector success is important, it’s wise to move with intention, being careful not to misjudge volatility or over-allocate your portfolio.  

The volatility profile of the tech sector is a more intense ride than what most investors are willing or able to successfully navigate. For example, if you were overweight in technology and lost 50%, you’d have to gain 100% on the way up to make up for that.  

More defensive, diversified positioning is a better strategy. Risk management allows investors to take part in a sector’s success while protecting assets against loss. If you lose less on the downside, you don’t have to be as aggressive on the upside, creating a smoother, more predictable investment experience.  

2. The Rhetoric of AI

When discussing tech stocks, it’s helpful to ask: how do the market and media view the allocation of AI? 

One indicator is the mention of the word “bubble” in headlines across major public articles. (Bubble means an inflated market segment that could “pop,” such as the Great Technology Bubble or the Global Financial Crisis.) 

Ultimately, while not to the levels of 2020 (with the Covid-19 pandemic and meme stock spikes), headline references to “bubble” are somewhat elevated in today’s media landscape. This suggests that the AI trade is relevant, but we must remain balanced to avoid the consequences of a potential pop.  

What does balance look like? At Credent, it means a diligent, equal-weighted approach that provides diversified exposure across the spectrum of developers, software, and hardware companies. It can also mean participating in some of the major names in the AI space (think: NVIDIA), as long as we avoid overallocation. 

3. The State of the Economy

With geopolitical conflicts continuing in the background of market movements, it’s helpful to consider how the economy is shaping out amidst those tensions. Or, more specifically, how are things actually transpiring compared to what economists expect?  

Right now, actual market data is coming in better than what economists anticipated, and that trend seems likely to continue.  

Markets rarely react the way the masses expect them to, and economists — like the rest of us — don’t have a crystal ball. If they are more pessimistic than what the data suggests, that tends to be a great time to be invested in the markets.  

April Market Recap – What Investors Can Do

Ultimately, our reminder remains the same: don’t attempt to time the market or the macro environment, and don’t let geopolitical events create a fear of the future that causes you to make harmful investment decisions.  

Instead, be mindful of sentiment and rhetoric, knowing that expectations and conversations about the market don’t always equate to outcomes. Maintain a balanced, well-structured approach that allows you to take advantage of market success without exposing yourself to unnecessary risk.  

Finally, follow your financial plan, knowing that it was built by experts to help you navigate all kinds of market and economic conditions.  

CX Institutional, LLC d/b/a Credent Wealth Management is a Registered Investment Advisor (RIA) headquartered in Indiana with over $4.3 billion in assets under management, offering a uniquely client-centric approach to wealth management through commission-free, transparent, and impactful financial planning and investment strategies. Since its inception in 2018, Credent has grown rapidly through a combination of organic growth and strategic acquisitions focused on providing advisors with a customized, cooperative transition as they build their own succession plans. Credent’s culture creates lasting, meaningful relationships, enabling advisors to do their best work while ensuring clients can maintain their standard of living without financial worry. Credent has been recognized on multiple industry lists, including Forbes America’s Top RIA Firms since 2023, Financial Advisor Magazine’s 2025 Top 50 Fastest Growing Firms and InvestmentNews 2025 5-Star RIA Firms. For more information, visit CredentWealth.com.