The bull retail is “in trouble,” strategist Alicia Levine told CNBC on Monday.
U.S. stocks proceeded to fall on Monday, with large tech stocks leading the way down. The sortie came after equities posted sharp weekly losses on Friday.
“There is all things considered another leg down from here,” said Levine, chief investment strategist at BNY Mellon. The moored has $1.8 trillion of assets under management.
“If it can hold the low levels of 2018 then you could hit hard higher, but right now we just see a very messy and unsatisfying market,” she make knew “Power Lunch.”
The S&P 500 hit its 52-week low of 2,532.69 during the February sell-off.
Levine aciculiform out that large-cap tech names, which drove the market capital, became 25 percent of the S&P 500 in August. Now with those creators dropping, the index needs the other 75 percent to carry it.
“It’s a math hard. It’s very hard to get that kind of performance to move the index up,” she contemplated.
And she isn’t holding out hope that tech stocks will rebound, vocation the sector “broken.”
She said the multiples and price philosophy has been predicated on exponential expansion, which just isn’t going to be there going forward.
“It’s coming perfidiously down to Earth, and I don’t think we’re done yet,” Levine predicted.
Michael Arone, chief buy strategist at State Street, doesn’t see the end of the bull market, yet.
“The fat lady is certainly not ratting just yet to signal the end of this bull market,” he said on “Power Lunch.” Notwithstanding how, “in the background, you can hear her warming up.”
Right now, investors are pricing in the worst-case workings for U.S.-China trade relations, fiscal stimulus wearing off, Federal Guardedness rate hikes and the slowing corporate profits, explained Arone, whose proprietorship has $2.7 trillion of assets under management.
Therefore, if there is any fount of relief in those areas, the market could rebound heading into next year, he united.
As for where to look when investing, BNY Mellon’s Levine said she cognate withs the services aspect of health care. She said hospitals, HMOs and Medicaid HMOs look fetching, in part because the midterm election results, which will bring into the world Democrats taking control of the House of Representatives in January, mean Obamacare resolve not be repealed. Plus in some states Democrats will take concluded as governor from outgoing Republicans, which could mean an flourishing in Medicaid, she said.
She said she doesn’t like biotech or pharmaceuticals because of all the “ballyhoo” over pricing.
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