Take advantage of volatility, buy these sectors: Pro
Investors should take advantage of the recent market volatility and put their cash to work in certain sectors, strategist Scott Wren told CNBC Friday.
“We want our clients in here buying,” Wren, senior equity strategist at Wells Fargo Advisors, said in an interview with “ Power Lunch .”
“We’re less than 4 percent off the all-time record high. This is a minimal pullback. … You’re likely to see this cyclical bull market carry on for another couple of years. If that’s right, our clients need to get some of this sideline cash into the market.”
U.S. stocks closed down on Friday , after a whipsaw week that saw huge gains and big losses for stocks. The Dow Jones Industrial Average (Dow Jones Global Indexes: .DJI) has moved nearly 2,000 points so far this month, and is down 2 percent in October.
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It’s the sectors that got “hammered” on the recent pullback that Wren is interested in.
“We want [our clients] in those sectors that are going to benefit from the continuation of the recovery,” he said.
That means industrials, technology and consumer discretionary stocks, which are “all clearly very sensitive to the ebb and flow of the economic cycle,” Wren noted.
He’d stay away from staples, utilities and health care, which he said have been the best relative performers on the pullback.
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