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Despite the volatility, the Dow Jones Industrial Average , S & P 500 , and Nasdaq Composite all remain in positive territory — but market watchers are divided on whether this is the start of a new bull market or just another bear market rally. Michael Landsberg, partner and chief investment officer at Landsberg Bennett Private Wealth Management, is firmly in the latter camp. Several risks remain in the market, according to Landsberg. For example, short-duration fixed income is an "attractive" area of the market right now, according to Landsberg. One sector that Landsberg is avoiding is "profitless tech," as he believes earnings in the sector will continue to decelerate.
Top of mind, however, is undoubtedly the path of interest rate hikes, with market pros nervously looking to the Federal Reserve's next rate decision on Mar. Anastasia Amoroso, chief investment strategist at iCapital, believes the "biggest market risk" right now is the Fed raising the terminal rate to a range of 6% to 6.5%. One obvious area fixed income, with Ma Yung-Yu, chief investment strategist at BMO Wealth Management, calling the asset class a "welcome relief and benefit to the portfolio." David Dietze, managing principal at Peapack Private Wealth Management, believes investors should "stay the course" in stocks. He noted that stock prices are "off their highs" — and the market has never failed to rebound to new highs.
Bank of America announced 93 new managing directors in Global Markets on Thursday. The division in 2022 saw sales and trading revenues climb to its highest mark since 2010.Insider has all the names of the newly promoted MDs. On Thursday the bank announced a new class of 360 managing directors, including 93 from the firm's Global Markets division — up from 86 last year. The bank's Global Corporate and Investment Bank promoted 87 new MDs. BofA made $16.5 billion in 2022 from sales and trading — including a fourth-quarter record of $3.7 billion — the highest tally for the firm since 2010.
Stock picks Against that backdrop, Landsberg said he favors the consumer staples and health care sectors. Consumer staples will therefore be a better trade than discretionary stocks as consumer spending power is reined in, he added. They are still going to have to buy some of these things, and that's going to be a spot that's going to hold up better." It is a leading player in consulting but more importantly in tech consulting, which is cybersecurity, artificial intelligence, and defense," Landsberg said. "With cyberattacks around the world that's going to continue, I don't see them really having a problem getting more business and continuing the business that they have," he added.
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.
Analyst explains why he's still negative on tech right now
  + stars: | 2022-10-31 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAnalyst explains why he's still negative on tech right nowLandsberg says he's "pretty negative" on tech, arguing the stocks still look expensive with many firms reporting weak earnings.
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