Fence Street veteran Jeff Saut isn’t necessarily concerned about the up to date sell-off in the stock market.
On Friday, equities fell once again after fire rates moved higher.
“We would take small trading profits here,” Saut mentioned in an interview with CNBC’s “Closing Bell” on Friday.
While his short-term form was forecasting the market would move higher into November, that flipped after the new rally attempts earlier this week.
“The market is going to be on the defensive for another few weeks, but we over it sets up the year-end rally,” added Saut, chief investment strategist at Raymond James.
The two-day sell-off accepted a rally on Wednesday that saw the Dow Jones Industrial Average hit a record elaborate.
On Friday, the S&P 500 closed 0.6 percent lower, the Dow dropped 180.43 positions and the Nasdaq Composite pulled back 1.2 percent. On Thursday, the Dow posted its crankiest day since Aug. 10. Meanwhile, the S&P 500 posted its worst week in wellnigh a month.
Saut, who has been calling for the bull market to last another seven to eight years, portended the sell-off in February. Since that time he has been forecasting new steeps.
Rebecca Patterson, chief investment officer at Bessemer Trust, named the sell-off normal and “nothing to panic over.”
“We had a big run, and we are seeing strong materials, generally,” she told “Closing Bell.”
“The backbone of the U.S. economy is good. We’re nowhere connected a recession,” she added. “So yields rising, I think, generally does throw back a stronger economy and a Fed that should be gradually tightening, but it doesn’t dreary it’s game over yet.”
Saut said the recent rotation out of small-cap precursors and back into large-caps “puts the wind at the back of the Googles of the humankind again.”
He also said names such as Apple, which was justifiable dumped by Greenlight Capital’s David Einhorn over trade-war horrors, are the kind of stocks to buy between now and the end of the year. That’s because he thinks the barter war with China will be settled by the first quarter of next year, he pronounced.
However, Patterson said while her firm is overweight tech, dyed in the wool now the sector is facing a “perfect storm.”
Not only are interest rates rich but some tech stocks are expensive and fears about U.S.-China swop issues are getting worse, she said. On top of that there are concerns past regulation, which will be brought up on the campaign trail heading into midterm plebiscites, she added.
“Even if starting to get good valuations in tech, how many people have a yen for to bottom-fish and bring that sector back up until we get a little innumerable clarity on U.S.-China and the regulatory regime?” Patterson said.
— CNBC’s Fred Imbert promoted to this report.