Political backdrop will help drive stocks to new highs, Federated's Phil Orlando predicts

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Major Wall Street firm boosts exposure to stocks, cites political backdrop and economic strength (via TradingNation)

According to Federated Hermes chief equity market strategist Phil Orlando, the firm increased its asset allocation to 3% from 2% hours after Election Day due to a more favorable environment.

"We're pretty comfortable that the risk of a blue wave, if you will, was off the table," he told CNBC's "The firm funded the move by decreasing its overweight cash position, which is now back to neutral. "We thought it was an appropriate time to throw another log on the fire," said Orlando, who oversees almost $615 billion in assets under management."[We] specifically added a tick into domestic large cap value which we think fundamentally will do better as the economy continues to gain steam."

The shift may not sound significant, but he contends it takes a major catalyst to move the needle on strategic positioning, and it typically only happens three to four times a year Orlando believes both the political and economic backdrop supports an S&P 500 run to at least 3,800 over the next 12 months.was terrific," he added. "We've probably clawed back half of the deficit in the labor market from that April trough."

 

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