S&P's Stovall: My Market Bounce Outlook
S&P's Sam Stovall says history points to an 18 percent market bounce in six months.
Standard & Poor's chief investment strategist told CNBC of his "Moses movement" scenario -- so-called as it traditionally starts to take shape over the course of 40 days -- in which bear markets begin to reverse themselves.
"It won't be a V-shaped recovery, but a slow, meandering recovery," Stovall predicted.
Which stocks and sectors will lead the revival?
"Those areas that held up the best on the way down," Stovall said, naming large-cap consumer staples and health care sectors. But he also believes buyers will be "possibly dipping back into energy and materials -- areas investors feel have been unfairly beaten up."
Stovall had one more caveat for investors using his "Moses movement" theory: "History is a guide, but never gospel."
Top Consumer Staple/Health Care Stocks:
- Johnson & Johnson
- Kimberly Clark
- Unilever plc ,
- Procter & Gamble
Disclosure information was not available for Stovall or his firm.