CNBC Pro: It’s too early to buy the dip, investor says, naming 8 stocks to buy when the time is right
One fund manager is cautioning against buying the dip, despite a 25% decline in the S&P 500 this year.
Instead, investors should be repositioning toward stocks sensitive to interest rates, John Ricciardi, head of asset allocation and a fund manager at Deuterium Capital, said.
He names three stocks in the consumer staples sectors, three in utilities, and two in materials for investors to scoop up when the time is right.
U.S. economy is doing well amid economic uncertainty, says Treasury Secretary Yellen
Treasury Secretary Janet Yellen said the U.S. is “doing very well” amid global economic uncertainty.
Although the U.S. economy has slowed after a strong recovery, jobs reports indicate a resilient economy, she said in an interview Tuesday with CNBC’s Sara Eisen.
She also acknowledged that inflation is too high and that lowering it is a priority for the Biden administration, and emphasized the importance of maintaining a healthy labor market while doing so.
— Chelsey Cox, Tanaya Macheel
IMF cuts global growth forecast for next year
CNBC Pro: This stock is a better bet than even U.S. Treasurys, fund manager says
Nick Griffin, chief investment officer at Munro Partners, is so bullish on one stock, he says it’s a better bet than U.S. Treasurys.
“It’s cheaper than a U.S. Treasury. It grows faster than the U.S. Treasury, and it’s probably got a better balance sheet than the U.S. Treasury. So from our point of view, it’s a fairly safe place to [put your] cash,” he said. Short-term U.S. Treasurys have surged in popularity among investors of late as yields pop.
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— Weizhen Tan
European markets: Here are the opening calls
European markets are heading for a lower open on Wednesday with global growth concerns dominating sentiment and investors looking ahead to Thursday’s inflation data out of the U.S.
The U.K.’s FTSE index is expected to open 22 points lower at 6,867, the German DAX down 56 points at 12,148, France’s CAC down 27 points at 5,799 and Italy’s FTSE MIB down 127 points at 20,511, according to data from IG.
On Tuesday, the International Monetary Fund cut its global growth forecast for next year to 2.7%. The prediction is 0.2 percentage points lower than its July forecast, and suggests that 2023 will feel like a recession for millions around the world.
European markets closed lower on Tuesday with all major bourses and the majority of sectors ending the trading session in the red. The region’s markets have suffered consecutive losing days as volatility continues to rattle sentiment.
The Bank of England intervened again to restore order to U.K. markets on Tuesday, with volatility in long-dated government bonds posing what it called a “material risk to U.K. financial stability.”
— Holly Ellyatt
