A 10% to 15% market correction could be a ‘significant opportunity,’ Invesco says
Even though the Dow just had its best day since March 5, Invesco’s Kristina Hooper isn’t sounding the all clear.
She warns the broader market is vulnerable to a 10% to 15% correction.
“We’re in something of a precarious period ... because we’ve gone so long without any kind of significant sell-off for the stock market. In addition, we’re watching the Fed try to maneuver into a very different position,” the firm’s chief global market strategist told CNBC’s “Trading Nation” on Monday. “There’s always a risk when you have a market that has been driven largely by the Fed.”
Despite her warning, Hooper is a market bull and plans to take advantage of weakness. If stocks fall sharply, she expects a quick recovery due to the economic recovery’s strength.
‘I would be a buyer’
“I would be a buyer on that pullback as soon as we saw a drop of 8% to 10%,” said Hooper. “This could be a significant opportunity — one that investors have been waiting for.”
Hooper expects stocks tied to the economic recovery to outperform growth stocks during the year’s second half.
“Keep in mind that this is a strong economic recovery,” she said. “That would favor cyclicals and smaller caps.”
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