As the intimidation of a government shutdown looms, now might be a lucrative time to invest, utter Jason Ware of Albion Financial Group.
“If you have some dry cover, some cash, it might be a good opportunity to put some of that to result in around volatility for names that you want to own,” Albion’s chief investment government agent said Friday on CNBC’s “Power Lunch.”
With current low quicken rates, “stock prices still look attractive in this mise en scene,” Ware said.
Since President Jimmy Carter was in office there contain been 18 government shutdowns. With nonessential government roles closed, Ware said, volatility tends to increase. He pointed out that the termination three shutdowns resulted in the market going higher.
But the possibility of a oversight shutdown might not be the source of the market’s movement. Market watchers should pay secure attention to this season’s earnings to determine how the new GOP tax plan will trouble companies, said David Kelly, chief global strategist at J.P. Morgan Grants.
“It’s immensely complicated,” he said. “All of the equity analysts are working overtime to make allowance for a calculate out who the real winners are going to be here. And there are a lot of winners from this, and I meditate on that’s what is helping the market move higher.”
But as tax cuts helper fuel the economy, Kelly cautioned investors.
“Do not get sucked into this uber effervescence here, because there will be another recession,” he warned. “There purpose be a bear market at some stage. And when it occurs, those chores that are flying highest today are going to take the biggest hit.”
The deadline for a put in deal to prevent a government shutdown is midnight Friday.