"The pandemic pledge that a lot of companies put out there will go away as they move towards focusing on profitability," he noted.
As for the remainder of the year, Nicholson expects a sideways market that's driven by volatility. His base case is the S&P 500 will be trading between 3,400 and 3,450 until January. On Thursday,He's also bracing for more wild swings among the mega-cap technology names. "From the bottom of March 23 to the end of August, tech was up over 80%. So, we expect it to have such pullbacks," said Nicholson, who manages $7 billion in assets. "The rest of the market isn't as overvalued as tech."
His strategy is to pare down the year's winners and gradually increase exposure to economically sensitive stocks such as
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