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CFRA Research Sam Stovall Offered His Views on the US Markets
In a recent interview with Bloomberg, CFRA Research Chief Investment Strategist Sam Stovall offered his views on the US markets. Stovall is generally optimistic about the outlook for the US economy in 2023 and 2024, with GDP growth expected to be 4.5% and 4.4%, respectively. He also expects inflation to moderate to 2.2% in 2024, which is the lowest rate among developed and emerging markets.
However, Stovall also warned that there are some risks to the outlook, including the potential for a recession in China, a further escalation of the war in Ukraine, and a more aggressive approach to monetary policy by the Federal Reserve.
Overall, Stovall believes that the US markets are still attractive for investors, but they should be prepared for volatility in the near term. He recommends overweighting sectors that are less sensitive to economic growth, such as healthcare, consumer staples, and utilities.
- The US economy is still expected to grow in 2023 and 2024 but at a slower pace than in 2022.
- Inflation is expected to moderate in 2024, but it will remain above the Fed’s target of 2%.
- The Federal Reserve is likely to remain raising interest rates in 2023, which could weigh on economic growth and corporate earnings.
- The US markets are still attractive for investors, but they should be prepared for volatility in the near term.
- Investors should overweight sectors that are less sensitive to economic growth, such as healthcare, consumer staples, and utilities.
It is important to note that Stovall’s views are just one perspective on the US markets. Investors should always do their own research before making any investment decisions.