Brace For a Market Pullback Soon: S&P's Stovall
We’re likely going to get a market correction, said Rob Morgan, market strategist at Clermont Wealth Strategies, and Sam Stovall, chief investment strategist at Standard & Poor’s.
“The average is about a 15 percent pullback, which would bring us back to 800 to 825 [on the S&P 500] before I can breathe a sigh of relief and believe we’re headed higher again,” Stovall told CNBC.
Stovall said he prefers stocks over bonds, small caps over large caps and cyclicals over the defensive areas.
Morgan said he also expects a market pullback and prefers stocks to bonds.
Stovall said he is cautious on consumer discretionary and industrials.
“We’ll probably get more bullish on energy soon—it’s not quite at where we want it to be,” said Morgan.
No immediate information was available for Stovall or Morgan.
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