Brace For a 'Grinding, Square-Root' Recovery: Strategist
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.
“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.
S&P Consumer Discretionary
- Watch Wood's Previous Appearance on CNBC (Feb. 25, 2010)
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No immediate information was available for Wood or his firm.