Be Ready for Pullback in May or June, Economist Says
Zachary Karabell, chief economist at Fred Alger Management, told CNBC’s “Closing Bell” that a good way to play the current bull market is to “buy what China is buying on all scores.”
“Look at the fundamental drivers of these companies as opposed to throwing darts at a dartboard or looking for sector leadership,” Karabell said Thursday. “I don’t think this is a market that’s going to have sustainable sector leadership, so you can’t just say, ‘Global growth is strong so let’s go industrials, materials and energy.’ Those things are going to work, but they’re also going to pull back sharply because people are going to be taking profits. Look at companies that are exposed to the right trends.”
He said investors should be prepared for a pullback in May or June.
“It’s happened each year for the past three years and it’s (created) good buying opportunities,” Karabell said.
But it’s just a dip and won’t slaughter the bull.
“I don’t see any global slowdown on the horizon,” Karabell said.