Meghan Shue, Wilmington Trust, believes that if you are able to withstand market swings, it is a great time to put money to work.
Although it may seem counterintuitive at first, she is more comfortable now investing in stocks than earlier this summer when Wall Street was quieter.
The firm's head for investment strategy said that it is more troubling when everything seems perfect and the sky is clear. "It might be beneficial to have some risks in the horizon."
Shue believes that there are plenty of issues, from the Covid-19 Delta variant surge to Federal Reserve policy to inflation to the Covid-19 delta variant surge, but she is positive they won't cause a derailment in the economic recovery and have no long-term adverse impact on the market.
She said that the volatility she's seen in the market was quite refreshing because it's been a low-volatility environment. "Typically, there is a 5%-10% pullback each year. We haven't seen more than a 5% pullback in over ten years.
The Dow, Nasdaq, and S&P 500 all had positive sessions on Friday but ended the week lower. The Dow ended a three-day losing streak and the tech-heavy Nasdaq had its best day in a whole month.
Shue oversees assets worth $141 billion and notes that it is crucial for investors to diversify and have at most a 9-12 month time horizon because of the choppiness.
Shue, a CNBC contributor, stated that "we don't believe it's really prudent" to attempt to time the ebbs or flows and back and forth of a particular trade.
Because they are positioned to benefit from economic growth, and should reap the benefits of rising interest rates, these are her top investments.
She noted that "We do have a bias towards cyclicals, and value." "We anticipate that the first rate increase will occur no later than the end or beginning of next year. I believe the markets and the economy will be able to handle this."
She sees consumer discretionary receiving a boost due to strong back-to school and holiday spending seasons.
She stated that "the consumer is in a very strong position."
Shue would not overlook growth, even though it might not be her top investment spot.
Shue stated, "Keep your eyes on technology and the growth areas of the market." "We like spots in pharma and health care."
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