The market could be trading at record highs, but Verdence Capital Advisors CIO fears there may be trouble lurking.
Megan Hornman, who oversees the $4.1 billion assets under management, believes there is too much complacent in the Aug. 1 US trade deadline.
“This market is priced in perfect circumstances,” she told CNBC’s “Fast Money” on Monday.
In addition to tariff concerns, she lists uncertainty about Federal Reserve policies and excessive conditions from a technical standpoint as a potential issue.
“If you see it once [rate cuts] Hornman, a former senior investment strategist at Deutsche Bank, said:
Hornman is particularly concerned that the technology level informs terms of acquisition of growth stocks, including major technologies.
“These are things I think might upset the gatherings we’re watching here,” she said.
Despite short-term attention, Hornman sees himself as a long-term bull and sees pullback as an opportunity. She lists international stocks in her top play on weaknesses in the market.
“I warn that now, they’re expensive from an evaluation standpoint [but] It’s cheaper than the US,” she said. I think that can continue. ”
To navigate uncertainty, her key advice for investors now: make sure they are properly allocated.
“Fast Money” trader Guy Adami looks at concerns, citing the number of retail investors who have been driving recent market profits.
“From an evaluation perspective, things are baking a bit here,” he said on Monday’s show.
The S&P 500 closed at record highs every day last week. As of the end of Friday, the index was 16% over the past three months, with the high-tech NASDAQ rising 21% over the same period. There is also a Nasdaq
– Natalie Zhang of CNBC contributed to this article.
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