(Bloomberg) — As stocks extend their slide Monday following one of the worst weeks for global shares since the start of the pandemic, Victoria Fernandez is eyeing a sale in several pockets of the equity market.
Most Read from Bloomberg
Stocks Get Crushed in Risk-Off Day as Bonds Rally: Markets Wrap
UAE Says New Attack Repelled as Yemen’s Houthis Vow More
Crypto Crash Erases More Than $1 Trillion in Market Value
China’s ‘Little Giants’ Are Its Latest Weapon in the U.S. Tech War
Solana Suffers Network Instability in Brutal Week for Crypto
“We think people need to pull out the shopping list,” the Crossmark Global Investments Inc. chief market strategist told Bloomberg Television Monday, adding that the average stock is down about 15% from its 52-week highs.
Fernandez will be focusing on pullbacks in cyclical and value stocks, and said she already added to her position in Lowe’s Companies Inc. on Friday, which has fallen 14% year-to-date. She also said she likes the financial sector for 2022.
“Look at this oversold condition that we’re in, and the longer-term upward trend that the market is still in, and combine that with the fact that credit spreads are so well behaved right now,” she said. “There’s still some support for the equity markets, there’s just going to be quite a bit of volatility.”
Concerns over the Federal Reserve’s imminent rate hike have weighed on risk assets including equities as of late. Only about half of the constituents in the S&P 500 are trading above their 200-day moving averages, which is keeping many traders cautious in the near term.
However, Fernandez isn’t the only one on Wall Street hoping to score discount-stock deals right now. A team of Oppenheimer Asset Management strategists led by John Stoltzfus wrote in a Monday note that the stock market recovery may come sooner than expected and “it’s time to make shopping lists and look for ‘babies that got thrown out with the bath water.’”
Most Read from Bloomberg Businessweek
The Charismatic Developer and the Ponzi Scheme That Suckered San Diego
How Did ID.me Get Between You and Your Identity?
Italy’s Version of Groundhog Day in Play as Mario Draghi Eyes Shift
Microsoft Makes a $69 Billion Down Payment on the Metaverse
Venture Investors’ $1.4 Billion Bet on News Faces a Reality Check
©2022 Bloomberg L.P.
Leave a Reply