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Wood: Do More Than ‘Sell in May and Go Away’

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  • Description

    Steve Wood of Russell Investments weighs in on the future of the markets.

  • Duration 3:05
  • Date

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Not Nicole thank you very much another sold -- to -- worn out adage.

Sell in May -- go away well it's may and the Dow is up ninety points and actually glad about that Steve what is here.

To talk a little bit more about the chief market strategist North American Russell investments -- really care what the market is doing but these outages evenings cliches.

-- little annoying after awhile or maybe they're not you believe in this month.

I'd I don't think so me because we think about a something's true within the mark would stiffen up they would -- -- true -- -- -- would.

Seats become true because they move ahead -- I think guess the sell in May and earned go away.

You know last year and maybe that would work for couple weeks but -- the time to get it was August and in September of -- -- 2011 to really get a nice rebound global stocks emerging markets.

Even in the United States so I think things are priced in ahead of time and you wanna do -- a research do a lot more active management while we're discipline and that.

That's why I think you can get annoying because it's it's an oversimplification.

Of our market that's not the same every year that said the market that we're in this year with the -- you saw a chart of it.

Over the last one year it is up the big time.

I mean the Dow's been up for seven months in a row that's when he 300 points over seven months 21%.

In that time span as you look at a longer term chart that has gotten us to thirteen 1300.

So if you're gonna say what goes up must come down you could make -- the you know.

An assertion that stocks are due to pull back a little bit now.

Sure but you know there were discussed here -- that's a risk on risk off environment assuming that all stocks are created equal that everything's going up and down together.

You know your if you look at the Russell 3000 know were up you know they're twelve and half percent to 2000 small cap space.

Russell 2000 is up in almost 12% right so you ear -- stocks generally move up I think.

There there's of its next port tough yards going forward the next phase of this -- tough yards -- our lord.

Includes the toughest yards together gonna come from which part of the market vs maybe this BC gains somewhere -- -- -- corporate somebody's gonna be the US equity -- but I think if you look at consumer discretionary.

-- things are not bad in this space I think if you look at some -- and energy.

Not necessarily the -- diversified oil but if you look at extended.

Capital plays like exploration oil services right technology.

Also some financials that you've got to really great research OK let me know what you're doing.

But it's going to be more like a -- balance sheet.

Assessment that it is just a general stock.

It's is what does this -- the economy doing right now in your view I mean yesterday we were talking about having just committed said hey you should be praying for bad news because then the Federal Reserve will come out bail us out.

Again -- does the market really is like that it is it now.

It does but those -- -- in north sugar highs in many ways it's like hoping -- get -- get some medicine.

I I think right now if you see that the Federal Reserve is on pause that we don't get you know QE3 your QE3 plus a twist I think -- assessment that the market's doing okay.

And that no capital markets credit markets equity markets can be -- self sufficient for the time being I think that might be longer term.

A better assessment but also that means that the market doesn't get everything moving up effect right he gets that hard work that grinding multi asset.

Especially managed.

Again it's it's a lot of tough yards but the yards of their all right I know some football cliche started the -- while the NFL draft -- -- Adair from Russell investments with us today dated -- of banks.

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