CNBC Stock Blog

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.

Second Opinion:

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.

Recommendations:

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Stovall Likes:

Technology

Energy

Stovall said he is cautious on consumer discretionary and industrials.

Morgan Likes:

Materials

“We’ll probably get more bullish on energy soon—it’s not quite at where we want it to be,” said Morgan.

Disclosure:

No immediate information was available for Stovall or Morgan.

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