Analyst Ed Clissold shared his thoughts on the marketplace outlook and where shareholders may want to glimpse if the economy works out of steam in an exclusive interview with CNBC PRO’s Mike Santoli.
“If you are in this slow development environment, you need to continue to give attention to companies that may deliver the growth in any case – they don’t really need the market to accomplish well. It’s almost by definition: development stocks,” described Clissold. “This originates from the technology sector, healthcare aswell – although obviously Washington will have a say in that. Discretionary is the additional one, although that one is definitely our least favorite of the development sectors.”
“Globally, we actually like emerging market segments. Multiples there will be more attractive and economical development looks to be always a tiny bit better there than what you’re witnessing in the developed world.”
Clissold is chief U.S. strategist for Ned Davis Research Group. He and his workforce are in charge of the firm’s U.S. equity, asset allocation, style, sector and equity motif analysis. Previously, Ed performed at Strong Capital Administration and as market strategist at J.C. Bradford & Co.
As part of his interview, Clissold likewise revealed his thoughts on tax reform.
“The tax cut really is actually a video game changer and kind of save the consensus amounts. If you do a back-of-the-envelope evaluation of what a tax slash would mean,” he explained. “If you took the tax rate down to 20 percent, which may be the latest proposal, it could be around a 7 percent boost to S&P 500 earnings.”
“And again, that may be the difference between the numbers coming in where analysts are expecting and a pretty big mess.”