WEALTHTRACK Investing in a “High Risk, Momentum-Driven Bull Market” With Veteran Strategist Bob Doll
Nov 1, 2024
Bob Doll, CEO and Chief Investment Officer of Crossmark Global Investments with over $7 billion in assets under management, delves into investing strategies in a risky, momentum-driven market. He highlights key economic indicators affecting investor sentiment and the impact of elections on market behavior. Doll discusses the challenges facing middle-income consumers due to rising debt and Federal Reserve policies. He emphasizes the importance of quality investments, recommending companies like Microsoft, Apple, and Cigna for a diversified long-term strategy.
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Own Quality Stocks
- Favor companies with earnings predictability, persistence, and strong free cash flow to reduce downside.
- These quality names tend to outperform on the way up and fall less in sell-offs.
Earnings Revisions Are Tilted Down
- Recent earnings revisions show more downgrades than upgrades, which concerns Doll at high valuation levels.
- High expectations make the market vulnerable if revisions continue downward.
Trim Gains And Buy Bonds
- Trim gains after big rallies and redeploy to bonds or cash as a defensive move.
- Consider nibbling in higher-yielding bonds since yields have risen and offer better alternatives.