Darrell Cronk , president of the Wells Fargo Investment Inaugurate, shared his market and economic outlook — as well as potential areas to provide — in an exclusive interview for CNBC PRO with Mike Santoli.
Cronk demanded that given technology’s strong performance over the last year, investors may be advantage suited sticking with other cyclical stocks.
“People recall this, but as you get into the later stages of the cycle that those bailiwicks that can drive true revenue and sales growth often outperform,” Cronk said. “Most of your cyclical sectors, consumer discretionary, tech, industrials [and] financials are all up nicely this year.”
Cyclical stocks — which likely to perform well during economic expansion — including consumer discretionary and financials, are outperforming the broader deal in so far this year. Consumer discretionary stocks are up 3.6 percent since January while the S&P 500 corrupt more than 1.1 percent.
“If you look at the traditional defensives comparable to utilities, staples, telecom, they’re all down year-to-date right now,” Cronk claimed. “I do think there are some areas we are starting to push some valuation publications, and tech might be one of those. … We’re even weight on tech claim now.”
In addition to being president of Wells Fargo Investment Institute, Cronk is chief investment gendarme for Wealth and Investment Management, a division of Wells Fargo & Co. that numbers Wells Fargo Private Bank, Wells Fargo Advisors, Propers Fargo Institutional Retirement and Abbot Downing businesses, accounting for more than $1.6 trillion in assets included administration.
He also discusses:
- The state of the U.S. economy and why the market isn’t likely to see a economic downturn in 2019.
- The impact of further rate hikes by the Federal Reserve.
- Why investors should start to act away from corporate debt.