Consumer spending, which accounts for more than two-thirds of the U.S. economy, grew only 0.1 percent in February, according to government data. Further weakness is likely as consumer sentiment deteriorated in March to a 16-year low, falling into recessionary territory, a report from the Reuters/University of Michigan report showed.
What will the stock market look like in 3 months and how should you trade it?
3 months from now I think we’re 5%-6% higher on the S&P but it will be a bumpy ride before we get there, says Macke. I recommend buying the dips and selling the rips. Start thinking about adding financials to your portfolio, he counsels.
Look at healthcare, says Jon Najarian. Aetna (AET) and Wellcare (WCG) are down significantly and I think investors threw out the baby with the bath water.
I think the Financial Select Sector SPDR (XLF) will be higher in 3 month, says Finerman. I like Fannie Mae (FNM). Also I expect to see less help from the Fed going forward.