U.S. stocks closed up for three consecutive days: what’s next?
- Sanctuary Wealth's Jeff Kilburg remains constructive on the S&P 500 index.
- Nancy Tangler says now is the time to start adding risk back to your portfolio.
- The benchmark has recovered more than 5.0% over the past three sessions.
The S&P 500 index might be indicating that it’s ready for a full-scale recovery, says Sanctuary Wealth’s Jeff Kilburg. The benchmark has recovered more than 5.0% over the past three sessions.
Kilburg’s remarks on CNBC’s ‘Worldwide Exchange’Copy link to section
Historically, Kilburg said, such consecutive gains in SPX lay the foundation for a move up in the next twelve months. This morning on CNBC’s “Worldwide Exchange”, he said:
For the first time, we’ve seen three 1.0% gains in the S&P 500. That’s relieved the anxiety, pushed VIX down to about 26. Since 1950, when you see three 1.0% gains in the market, about 90% of the times, we do see the market move higher and the one-year return sit on average about 20%.
He sees dividend-paying stocks as great picks amidst the double whammy of persistently high inflation and the Ukraine war.
Nancy Tangler also has conviction in market’s ability to recoverCopy link to section
In a separate CNBC interview, Laffer Tangler Investments’ CEO also said the market tends to be up double-digit in a year after weakness related to a significant geopolitical event. Nancy Tangler added:
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Now is actually the time I think to begin to add some risk back into your portfolio. We’re in late-mid-cycle. PMIs are rolling over. Earnings will be revised down negative. So, look for reliable growers that are not trading at ridiculous multiples, including some of the large-cap tech names.
A day earlier, LPL Financial’s Ryan Detrick also said that another three years of bull market was still a possibility.
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