The appetite for risk is running out of steam and 2010 could bring a correction followed by flat stock markets for the majority of the year, said Simon Goodfellow, head of European equity strategy research at ING Wholesale Banking. He shared his market outlook.
“We are bullish about earnings,” Goodfellow told CNBC.
“A lot of that is from recovery growth in the financials, a boost from high oil prices and a lot of cost cutting by the oil companies.”
But Goodfellow said he expects a market correction of around 10 percent sometime in the first quarter or early second quarter.
“And then, sideways markets, and that will last until the third quarter,” he said.
Goodfellow said investors should take profits in the financials.
He also likes pharmaceuticals, food and beverages and some of the defensive sectors.
- Watch Goodfellow's Previous CNBC Appearance (Nov. 4, 2009)
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No immediate information was available for Goodfellow or his firm.