GO
Loading...

Abandon All Retailers; Goldman Will Survive: Strategist

Clermont Wealth Strategies is 'underweight' the entire consumer discretionary sector, which includes retailers, Rob Morgan, market strategist at Clermont Wealth Strategies said.

"Consumer spending in the U.S. is probably going to continue to be weak for some period of time," Morgan told CNBC.

"Even though we may be close to a tipping point to get more enthusiastic for U.S. stocks in general, the consumer discretionary, and in particular the retail sector, is probably going to continue to lag a bit."

Morgan is 'neutral' on financials, as he sees the sector continuing to struggle.

More on CNBC.com

But Goldman Sachs is the best of a bad bunch, he said.

"The good thing about Goldman Sachs is that it looks like the firm's going to be a survivor, and given the number of investment banks that no longer exist this year, that is going to be a plus," he said.

Once President-elect Barack Obama is in the White House with a Democratic Congress, the sectors that could possibly be affected are oil and pharmaceuticals, Morgan said.

Contact Europe News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Europe Video

  • ETX to buy Alpari's client list

    Online trading company ETX is set to buy the entire client list of foreign exchange broker, Alpari. Joe Rundle, head of trading at ETX Capital, discusses further.

  • India: Open for business?

    India's stocks and currency have performed strongly recently thanks, in part, to new business-friendly policies. Ashish Chauhan, Managing Director and CEO of the Bombay Stock Exchange, discusses how this has reflected in stock listings.

  • Europe slumps as oil climbs; Airlines fall

    European equities closed sharply lower on Thursday following a selloff in the U.S. Wednesday and a lackluster lead from Asia.