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Stocks are drifting lower today -- the Dow up seventy points right now after that disappointing employment report care at eighty heat of course Friday.
We'll get the all important government reports on the payroll -- it in the unemployment rate -- after both the Dow and S&P each sought new record.
Closing highs yesterday.
But with a rally being led by defensive sectors these less economically sensitive if you will stocks how much longer.
How long the rally -- legs if you well my next guest says that despite some fullback in the near future the market will stabilizing move higher Robert Catholic.
CN partners chief market strategist pleased to welcome you to our show where.
He sees the S&P by -- -- -- you so much for joining us so health care stocks staple stocks consumer staples at its Telecom stocks defensive sectors.
Leading this rally was -- stadium.
Well it's really -- chicken play a lot of folks have got into this market because they were forced to.
I mean if you take a look at where we were at the end of last year you know we got through the fiscal clip we got through very used to respiration we got through the higher taxes we -- got through Cyprus.
A lot of people you know saw this market moving up on them they were looking for -- a pullback he got about ten and a half percent in the first quarter.
And it never really came in so I think there was a lot of window dressing last week heading into the into the quarter before forced the buying into a rising market.
It -- they are looking for areas that they wanted to feel comfortable actually didn't feel all that comfortable in some of these the more cyclical areas and -- like you mentioned they they went into the defense of various.
And so I I think that's right reasons that you've seen the market move up.
Well it isn't any not I mean if you look at the data today and start what let me just coming here and -- who can work in DP employment data it's it we -- -- survey which was soft.
That march payrolls are expected to be.
Fewer then -- February payrolls expectations for 200000 unemployment will hold steady seven point seven so investors are very savvy that he.
Overall economy is nowhere.
Well the economy failing to move forward I I disagreed the economy is moving forward -- what I did -- they are separate OK -- you know they every -- love to see the economy growing at a pace that China is growing out even though China has slowed down.
Like you know we it's going to take more time -- we we've we've swung from one end of the pendulum to the other were going to be moving forward at a at a relatively slow pace but you know with the -- support.
-- even though you could argue well you know -- this is a a market being propped up by the Fed that is true but I think the market could probably sustain itself.
In the economy can continue with sustained itself.
But just may be at at at not maybe these these levels here.
Right do you think that the money and I'm sorry to have to keep -- it's not my intention you have a lot to save some fantastic analysis.
But it really want an easier win on what's going on right now and the Dow is to -- is down 64 off the worst levels of the session but -- this the beginning of of a more significant pullback.
It could be and you know what I think if we do see a pull back it's going to be rather quick it's gonna be rather sharp.
They're gonna probably see anywhere between three and 7% it's not.
You know lawyer -- a full blown -- correction it's not a bear market this it just on a normal course of action in a typical bull market.
It's going to shake out a lot of we -- a lot of money that's coming to the market recently may be money even coming in from Europe.
And it's going to give bargain hunters an opportunity to feel more comfortable there's a lot of people that have been waiting on the sidelines and it's going to be the opportunity for the retail investors sitting at home looking you know what they should be buying they should be putting their -- together now.
And and you know give them an opportunity get into a market that I think is going to be hired by.
-- sort of names -- industries we can widen out should be on that list do you expect to -- -- continuation of this defensive sectors and second part of that question where he CDS and keep the end of the year.
Sure I I think you wanna have a diversified portfolio you wanna have exposure to basically all the sectors of the -- -- But I think you really -- -- be way over waiting beat this cyclicals things like energy.
Bob basic material industrials.
Consumer discretionary financials.
And technology technology's been it's been a -- this year but I think as we continue to move forward business we're going to try to -- to do more with less.
In so technology is going to be a beneficiary of that.
And I think the answer your second part the by the end of the year we believe that the S&P could trade up to 16100.
It's not gonna get there are right from here.
So it's going to take a little bit of a breather and it's going to be able to move up and that's where you're gonna get your you know -- 7810%.
You know while return on your portfolio and the ballot if earnings continue to increase you could probably see 1650 by your -- Robert Kaplan thanks for joining us good -- I still have it.
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