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’
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:
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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 recover
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:
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.