With pent-up demand and ongoing corporate productivity enhancements, S&P is “less worried about a negative surprise within tech,” the strategist said.
Investors should also position for gains in the market following the election. Young noted that in election years, the S&P 500 tends to make its annual high in November and December after the election. “There’s a strong track record that removing the uncertainty of who wins the presidential election and the Congress helps stocks,” he said.
Young also said that they’ll be plenty of time for investors to position for the “fiscal cliff” – when a number of tax cuts expire and spending cuts kick in later in the year — later in the year. “If you’re worried about it, you can hedge it from what we thing will probably be higher levels,” Young said.
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