Subodh Kumar, chief investment strategist at Subodh Kumar Associates, told CNBC’s “Morning Call” that investors need to see increased corporate earnings and a Fed rate cut before putting more money into the equity markets.
“I don’t think either of them is going to happen,” Kumar said Friday. “Consensus hopes it will happen by year end, but I think that’s too soon.”
He said the market probably won’t move significantly higher until leadership comes from cyclicals and financials. Healthcare and consumer staples now offer steady cash flow and a safe haven to investors.