Around this time a year ago, Seema Shah, chief strategist at Principal Global Investors, warned that stocks were facing an imminent selloff.
“If that trade deal doesn’t happen and if everything falls apart and it feels like tensions are getting worse, then I think we are facing a potential repeat of last year, and it will be worse,” Shah told MarketWatch. She explains a “bigger shock move” would be probable because liquidity falls so much in December.
And in a nod to a calmer economic front, on the other end are cyclical stocks, which are tightly correlated to economic activity. “The two sectors that we like are financials and technology…with any kind of upturn we should see a steepening yield curve, which bodes well for financials and any time that there is a boost in market sentiment you’ll always see a rush into technology,” she says.
The buzz Shares of agricultural equipment maker Deere DE, +0.02% are tumbling on a profit warning. Dell DELL, -3.40% stock is down after the personal computer maker cut its revenue guidance. Shares of HP HPQ, -0.45% are up on after the technology company posted higher revenue.
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Remember what happened in October and November? Remember how sentiment was out of control? Remember how economic and corporate reporting was excellent and it wasn’t good enough? One strategist is about to lose their job. Or is lying and is long nearly all US equities. 🤷🏻♂️
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Source: MarketWatch - 🏆 3. / 97 Read more »