Oppenheimer’s chief investment strategist, John Stoltzfus, notes that nasty sell-offs aren’t uncommon in times of Federal Reserve tightening, and that the market appears “way over sold” with big declines hitting even stocks with strong cash flow and profitability.
“We remain positive on equities favoring cyclicals over defensives and profitable technology companies whose services and products are deeply embedded in the lives of both business and the consumer,” he said in a note Monday. “We look for the economy and the markets… to ‘work their way out of the woods’ from a period of high anxiety and crisis.”
“Investors are trying to come to grips with what exactly is happening and always try to guess what the outcome is,” said Susan Schmidt of Aviva Investors. Investors and the market hate uncertainty “and this is a period where they don’t have any clear indication on what’s going to happen with this push-pull between inflation and the economy.”
