Stocks advanced Monday after some positive economic reports. How much longer will the rally last? Phil Orlando, chief equity market strategist at Federated Investors, and Scott Wren, senior equity strategist at Wells Fargo Advisors, shared their insights.
“While our year-end target calls for a level on the S&P of where we are right now, it wouldn’t surprise me if we saw a run higher in the near-term,” Wren told CNBC.
He said the economy is getting better and expects US GDP growth to be about 2.5 percent this year.
“We’re looking for modest economic growth, modest inflation, and stocks can do well in that kind of environment,” he said.
Wren is overweightcyclical, industrial and material sectors and underweighthealthcare, staple and utilities.
(Read an opposing viewpoint: Sell in May, Go Away? Yes, Says Senior Analyst)
In the meantime, Orlando said the markets are “climbing a wall of worry” but remained bullish on the rally.
“GDP growth will be around 4 percent,” he added.
Orlando said his 12-month price objective for the S&P is at 1,350. He likes beta-sensitive sectors in the market such as technology and told investors to avoidTreasurys.
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No immediate information was available for Orlando or Wren.
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