Principal Global Investors Chief Strategist Seema Shah conversed with Yahoo Finance’s Alexis Christoforous and Brian Sozzi and shared her perspectives on the current economic situation.
“What I can see is consolidation towards the end of the year, and that will be because the market continues to be supported by central banks and governments. But the economic recovery is going to be very, very gradual” – Seema Shah.
Here are the key details:
Shah believes that the United States is the best place to put your money right now because of the efforts led by the Federal Reserve which can stand behind the market if any additional problems occur.
She indicated that shares in tech stocks will continue to perform well as a result of their strong balance sheets, low leverages, and positive cash flows while other sectors will take a longer time to recover.
These include hospitality, retail, and tourism which have lost almost half of their market cap in the last couple months.
Ultimately, Shah cites that there is a growing demand and that consumer confidence will increase over time as the restrictions come to an end.
However, increasing tensions between both the U.S. and China are going to negatively affect the stock market.
Recently, American Secretary of State Mike Pompeo declared that Hong Kong is no longer considered to be an autonomous state as the Trump administration is attempting to revoke special treatment from the region.
In fact, President Trump will host a press conference to address the ongoing situation with China.
As Warren Buffett says: “Don’t bet against America”