Wells Fargo's Cronk: The full (negative) impact of Fed moves hasn't hit yet

Darrell Cronk, chief investment officer at Wells Fargo Wealth and Investment Management, says the slow-developing impacts from the Federal Reserve's monetary tightening policy 'still lies before us,' putting the market 'in a vulnerable spot' as it enters August, September and October, historically the toughest months of the year. As a result, he expects a 'tactical correction' late this year, and urges patience while that plays out. Also stressing patience on this show is Jason Brown of The Brown Report, who notes that the market has hit a band of resistance short of returning to all-time highs and he expects it to struggle to break through, although he thinks support levels will hold up because the negatives have been priced in. He expects a choppy, range-bound market that works well for options and covered-call strategies but is hard on directional traders who need bullish or bearish trends. Plus, Scott Caraher, head of senior loans at Nuveen says rate hikes are stressing low-rated companies and are likely to spur new defaults, but also creating opportunities in higher-rated paper that can get through the economic downturn and thrive when rates eventually start to reverse their course