Meghan Shue of the Wilmington Trust is opening her playbook for the second half – which begins on Thursday.
Her strategies include overexposure to the cycle. And she likes finance, energy, commodities. materials and industry
“We are seeing a continued economic recovery and a deterrent to stocks,” the company’s head of investment strategy told CNBC’s “Trading Nation” on Friday.
Unless this week there is a huge sell-off. The market will begin in the last six months of the year close to record levels.
The S&P 500 just ended its best week since February, closing at 4,280.70, its all-time high. The Dow closed up 3.4% this week, showing its best weekly performance since mid-March.
The high-tech Nasdaq closed slightly on Friday, but was up 2.35% for the week.
Shue is optimistic in the wider market. But she also anticipates future turbulence.
“We expect a merger. Maybe a pullback from here,” said CNBC contributor Shue.
Shue, who oversees $141.5 billion in assets. Neutral in growth stocks, especially Big Tech. She sees the segment as an important part of a diversified portfolio. However, Shu avoids getting too involved in the group as she expects the rising 10-year Treasury bill to turn into a headwind. Shue’s data is expected to reach at least 2% over the next 12 months.
‘It’s important not to forget about technology’
“Technology is really long-term, so it can be challenging if our interest rate perspective isn’t there. But it’s an important part of the economy,” she said. “It’s important not to forget about technology, although there may be some hiccups in the next few months.”
Shue expects the record recovery to gradually weaken over the next six months. She saw a single low to mid percent increase.
“Every indication we have in the economic data so far. is that we may be at or beyond the peak of economic activity. Maybe it’s the cycle,” Chu said. “We’re entering a period of slowdown.”
However, Shue suggested not to deceive investors.
“Actually, the slowdown may still exceed the US growth trend. and the global economy,” she said.
For now, Shue is a lightweight consumer goods, utilities, and REITS, a play on defense.
“It’s been an amazing run over the past 12 months. And obviously we bounced off the bottom,” Shue said.