As the market has begun to recover from the large sell-off that occurred earlier in August and equity indexes (^DJI, ^IXIC, ^GSPC) get back on track with consistent gains, some may believe the market is entering a new cycle. But is that the case as investors price in interest rate cuts from the Federal Reserve for late 2024?
Allspring Global Investments senior portfolio manager Bryant VanCronkhite joins Market Domination to give insight into the current market cycle and what investors can expect going forward.
As to whether or not the market is entering a new cycle, VanCronkhite prefers being “balanced over bravery right now.”
“If you’re brave and you think the Fed has stuck the landing, will navigate and push us through that ever-closing window and start a new market cycle. Then you want to be aggressive, you want to buy beta, you want to buy deep value, you want to buy leverage,” VanCronkhite tells Yahoo Finance. “I think it’s a risky bet given where we are with markets right now. I prefer to be balanced. I prefer to use the industrial sector as an example to offset transportation, which is an offensive category, with waste collection, which is a defensive category.”
For more expert insight and the latest market action, click here to watch this full episode of Market Domination.
This post was written by Nicholas Jacobino