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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailInvestors can find market opportunities in select sectors, says Michael LandsbergMichael Landsberg, chief investment officer of Landsberg Bennett Private Wealth Management, and Ross Mayfield, investment strategy analyst at Baird, join CNBC's 'Squawk Box' with potential investment strategies ahead of the open.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe consumer scares me a little bit, says Landsberg Bennett's Michael LandsbergMichael Landsberg, Landsberg Bennett Private Wealth Management CIO, joins 'Power Lunch' to discuss why defensive positioning is the way to invest now, what happens if rates stay higher for longer and more.
The S&P 500 jumped 5.5% on Thursday on news of cooling inflation. Investors are hoping the Fed will back off of hawkish policy sooner than they say. The SPDR S&P 500 Trust (SPY) offers exposure to the S&P 500 index. "Investors should take steps to ensure that their portfolio is positioned for a global recession, as the stock market still isn't pricing in this global recession risk," Landsberg said. We are bearish on the sectors that we think will do poorly in a global recession such as tech and discretionary."
Stocks powered higher this week after the October inflaton report but the path to year-end gains remains volatile, market analysts say. It won't be a straight-up rally," Nancy Tengler of Laffer Tengler Investments says. People covering short positions and outsized influence of trading algorithms appeared to have helped fuel Thursday's rally, Tengler said in taking a broader view of that day's run higher. Another inflation report is due before the Fed's next meeting. "If there's still work to be done with inflation then rates are still going to go higher.
After October's stock market rally , investors are debating whether stocks have hit the bottom or if it's another short-lived bounce. We're having a little bit of a rally here — I think, again, short lived," he told CNBC's Street Signs Asia on Monday. "Investors should be adding money to the areas that will do OK in a global recession; short the areas that will not." What to avoid Landsberg said he would short tech, high-yield credit, and European assets. His firm has short positions in: ProShares Short QQQ, ProShares Short S & P 500, ProShares Short Russell 2000, ProShares Short MSCI EAFE, ProShares Short Hi Yield and ProShares Short Financials.
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