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Market Trend has Turned Negative: Stock Picker

"We are market trend followers" and "we’re 100 percent in cash at the moment" because the trend has turned negative, said Graham Bibby, CEO and CIO of Richmond Asset Management. He shared his investment strategy.

“We’ve found this year that there’s been a lot of indecision in the market—you’ve got strong days followed by weak days,” Bibby told CNBC.

“But overall, the trend has turned negative.”

Bibby said he is still unsure whether the economic growth is led by the stimulus or is real growth.

“We see some stocks holding up quite well—like Apple , Ford , the biotech sector has broken out, but it’s not really following through,” he said.

“So that makes us a little bit nervous—our best bet at the moment is Australia and Australian-related property, especially South Australia.”

Bibby said the negative market trend is also apparent in emerging markets such as China and Brazil.

“They’re all moving to new recent lows as are commodity prices,” he said. “At some stage, those markets will be the ones to get into because those are where the drivers of growth are going to come—they’re not really going to come from the Western world.”

Bibby Is Watching:

Microsoft

Amgen

AMD

General Electric*

American Express

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  • Watch Bibby's Previous Appearance on CNBC (Jan. 13, 2010)

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More Market Intelligence:

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CNBC Data Pages:

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CNBC Slideshows:

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Disclosures:

Bibby does not own any shares of MSFT, AMGN, AMD, GE or AXP.

*General Electric is the parent company of CNBC.

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Disclaimer

Symbol
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AMD
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AMGN
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ALXN
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F
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GE
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MSFT
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AAPL
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