Joseph Fahmy: ‘Fed will continue to provide the equity friendly environment’

The S&P 500 index made investors uncomfortable in recent weeks as it fell more than 5.0% from a year-to-date high on September 2^nd. On the other end of the spectrum, however, there’s Zor Capital’s Joseph Fahmy, who sees the recent pullback as merely a “part of the seasonal weakness”.

Fahmy’s remarks on CNBC’s “Worldwide Exchange”

Fahmy quoted an over 2.0% recovery in benchmark since Monday to make a thesis that the market was now ready to step into the traditionally strong months of November and December. On CNBC’s “Worldwide Exchange”, he said:

He’s convinced that post-mid-October, as the big cap technology names start to report quarterly results, the news cycle will return to fundamentals laying the groundwork for a strong last two months of the year.

Fahmy expects the U.S. Fed to favour equity friendly environment

According to Fahmy, the U.S. Federal Reserve will continue to provide the “equity friendly environment”. He doesn’t see the central bank “rattling the markets” in its next meeting on November 3^rd.

Fahmy is still bullish on software and semiconductor stocks and recommends patience to get through seasonal weakness before a favourable Q4 kicks in.