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S&P's Stovall: My Market Bounce Outlook

CNBC.com
Tuesday, 7 Oct 2008 | 12:48 PM ET

S&P's Sam Stovall says history points to an 18 percent market bounce in six months.

History As a Guide
Learning from past market activity, with Sam Stovall, Standard & Poor's chief investrment strategist

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."

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Top Consumer Staple/Health Care Stocks:

- Johnson & Johnson

- Kimberly Clark

- Unilever plc ,
Unilever NV

- Procter & Gamble

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Disclosures:

Disclosure information was not available for Stovall or his firm.

Disclaimer

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JNJ
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1767
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PG
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ULVR
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UNA
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