Big investors haven’t capitulated yet, so be wary of this market, warns SocGen strategist

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 50 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 97%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

A tech-led recovery isn't sustainable, according to this strategist.

U.S. jobless claims revealed millions more have been forced out of work due to the coronavirus crisis, while we started the day with bleak Europe purchasing managers index data.

“I think there might be some limited upside at this point, because we would need to see a rotation out of those long-duration stocks into more cyclical ones like discretionary, energy, industrial, reflective of growth actually picking up and really a V-shaped recovery being priced in, rather than this tech-led recovery, which in my view is not sustainable,” Huynh told MarketWatch.

“That’s why we’re being much more discriminate, we like credit over sovereign bonds, we still have some equities,” said Huynh, but added that a balanced portfolio makes more sense than too much emphasis on equities right now. The chart “Is greater economic uncertainty an insurmountable headwind for stocks?” BTIG strategists Julian Emanuel and Michael Chu answer that with this chart:

Drugmaker Eli Lilly LLY, +2.64% reported upbeat earnings and retailer Target’s TGT, -0.05% online sales soared. Still to come is Domino’s Pizza DPZ, +5.07% and chip maker Intel INTC, +6.63% after the close.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Ahead of Netflix earnings, trader predicts a big rally in the cardsNetflix is about to report earnings. Mark Newton of Newton Advisors on where the stock heads next. TradingNation I would certainly hope so. Everyone signed up who would or could sign up. Next quarter? Numbers should be flat. TradingNation P/E is insane. Great company and a great stock, but just way to expensive right now. TradingNation I’ll take the other side. Viewing doesn’t matter; subscribers do So more viewing by existing subscribers mean nothing Viewing by people who use friends’ passwords mean nothing International subscriber growth being hurt by a recession; now that means something
Source: CNBC - 🏆 12. / 72 Read more »