These parts of the stock market are already priced for recession, Northwestern CIO says

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Smaller companies are already trading like they've been beaten up by a weak economy, according to a top investor at Northwestern Mutual Wealth Management.

Recurring predictions over the past couple years that a recession in the U.S. was just around the corner may have created a way for investors to ride out a downturn when it actually comes. Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management, told CNBC that his team is shifting toward cheaper parts of the stock market that could hold up better if the economy sours, since those areas already look beaten down.

One of the biggest bulls on the Street thinks the market rally will broaden beyond tech in the second half

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