With the automatic spending-cut process known as the "sequester" set to trigger on Friday, investors should avoid buying defense stocks and instead look to play defense, Delphi Management President Scott Black told CNBC on Monday.
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"We lost $110 billion through the payroll-tax hike … that represented 0.7 percent of (gross domestic product)," Black said in a "Squawk Box" interview. The $85 billion payment on the sequester for 2013 would slow economic growth by another half percent, he said. By Black's calculations, that would be a 1.2-percent drag on GDP. That's a big dent: For all of last year, growth was just 1.5 percent. He also expressed concern that consumers already seem to be reining in their spending.
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