Wilmington Trust’s Meghan Shue is opening her playbook for the year’s second half — which starts Thursday.

Her strategy includes an overexposure to cyclicals, and she favors financials, energy, commodities, materials and industrials.

“We see the economic recovery continuing and being a tailwind for stocks,” the firm’s head of investment strategy told CNBC’s “Trading Nation” on Friday.

Unless this week sees a dramatic sell-off, the market will start the year’s final six months around record highs.

The S&P 500 just wrapped up its best week since February, closing at 4,280.70 — an all-time high. The Dow closed up 3.4% for the week, notching its best weekly performance since mid-March.

The tech-heavy Nasdaq closed slightly lower on Friday. But it’s up 2.35% for the week.

Shue is optimistic on the broader market, but she also predicts turbulence ahead.

“We are expecting some perhaps consolidation, maybe a pullback from here,” said Shue, a CNBC contributor.

Shue, who oversees $141.5 billion in assets, is neutral on growth stocks, particularly Big Tech. She views the group as a key part of a diversified portfolio. However, Shue would avoid getting too deep into the group because she expects a rising 10-year Treasury note yield to act as a headwind. According to Shue, it should reach at least 2% over the next 12 months.

‘It’s really important not to forget about technology’


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