Power Play: Time for global growth to shine
The major averages are on pace for their first weekly loss in six weeks. Dan Skelly, the head of the Morgan Stanley Model Portfolio Solutions Equity Team tells CNBC's "Power Lunch" on Thursday the rally is not over, but investors have to be more careful now.
"Given how negative sentiment has been concerning fears of a U.S. recession, we think there could be modest upside for the market. However, investors would be prudent to be more selective at this stage of the cycle, given where overall market valuations are," Skelly said.
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With global markets rebalancing growth from the U.S. to other parts of the world, Skelly believes investors have to stick with top-tier companies with strong fundamentals.
"From an equity perspective, we favor quality growth ideas with catalysts (not pure play momentum stocks), and also see long term valuation opportunities for financials and select value stocks," Skelly said.