Market won't bottom until stocks fall at least another 5%, top Wells Fargo strategist says

  • 📰 CNBC
  • ⏱ Reading Time:
  • 51 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 72%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

A return to this S&P 500 level could suggest the bottom is in for stocks (via TradingNation)

That level is more than 10% from the S&P 500's record high of 3,027 hit on July 26."Our year-end target is 3,030 on the S&P. So, clearly we're constructive here," he said.

The big near-term challenge is the escalation of the U.S.-China trade war, according to Wren. Even if an imperfect deal is reached between the two countries, Wren speculates stocks will break out of the painful slump. "It's something like you remove the tariffs. You take away the promise that more are coming," he said. "You get back to some kind of certainty."

Until then, Wren makes it clear that he's staying away from stocks. He's more comfortable parking some money in cash and short-term Treasurys while waiting for an entry point around the 2,700 level.In his latest weekly note, Wren advised investors to reduce risk in their portfolio. According to Wren, it's no man's land in terms of picking out a profitable spot in the market right now.

"The negative risks to our outlook have increased meaningfully in recent weeks," Wren wrote. "The uncertainty likely will not go away soon. Immediate gratification is not in the cards."

 

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:

 /  🏆 12. 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.

Dow drops more than 100 points as bond-market recession indicator, trade worries worsenThe Dow dropped more than 100 points as trade uncertainty continued and a recession indicator from the bond market worsened. As the yield curve remained inverted, both the S&P 500 and the NASDAQ also closed down. RockyMountViews Have the media considered that Trump’s trade related burbles don’t really matter much to the markets? There is no more liquidity you gave all to the Chinese elders thanks to your GOP and DNC leadership and then they cut the line credit off FDICgov to the world ask your RoyalFamily so all you have is the cash on you. No more food stamps NYCHRA welfare SocialSecurity
Source: CNBC - 🏆 12. / 72 Read more »