Strategist Warns Market is 'Vulnerable'
Interest rates, oil prices, and lost productivity are seen as hurting the U.S. economy -- but the greater problem is the Dow’s 13% growth in 11 weeks, Al Goldman, chief market strategist at A.G. Edwards, told “Power Lunch.”
“That’s a good 18-month rally and we haven’t had a correction,” Goldman said. “And, last time I checked, corrections have not been repealed.”
And while there’s some “disturbing” news, Goldman said, the market is “vulnerable to good news, bad news or no news.”
Goldman remains bullish for the long term -- but he acknowledges a 3% to 5% correction in the last two days. On the pullback, he likes technology, finance, pharmaceuticals and biotechs. He also recommends “big-cap quality growth companies.”
So, should investors trade up? “If an investor is lucky to have cash on the sidelines, 10%, 15%, I would keep it right there and look for better buying opportunities over the next two, three, four weeks.”