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Brace For a 'Grinding, Square-Root' Recovery: Strategist

Friday, 5 Mar 2010 | 4:15 PM ET

Despite Greece’s debt crisis, stocks are trading higher on relief that the US job loss in February wasn't as bad as expected. Is the employment news a catalyst for a possible rally? Stephen Wood, chief market strategist at Russell Investments, shared his insights.

Stocks Higher On Jobs Report
A benign jobs report pushing stocks higher on Friday, with Stephen Wood, Russell Investments and Drew Kanaly, Kanaly Trust Co.

“I don’t think the data are going to make you all that happy in the near-future,” Wood told CNBC.

“This is a grinding recovery… It’s measurable, but it’s not brisk.”

Wood said investors should brace for “sloppy and grinding data” for the foreseeable future.

“It’s going to be a square-root sign recovery,” added. “We came into this almost perpendicular—we’ve done a lot better than anyone would have forecasted a year ago—but it’s not a V-shape brisk recovery either.”

Investors need to take a global approach when looking to get into the market, advised Wood.

Wood Likes:

S&P Technology

S&P Financial

S&P Energy

S&P Consumer Discretionary

  • Watch Wood's Previous Appearance on CNBC (Feb. 25, 2010)

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CNBC's Companies in the News:

Apple

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Microsoft

Google

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Toyota

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Disclosures:

No immediate information was available for Wood or his firm.

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Disclaimer

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