Stocks are poised to see a correction of up to 10% that zaps euphoria from market, SkyBridge Capital co-CIO says
- Troy Gayeski,
SkyBridge Capitalco-chief investment officer, told Fox Business that the market is poised for a correction in the 5-10% range.
- He said this correction could be expected because there's a "flat money supply" and an S&P 500 that's trading at 20 times earnings.
- The co-chief said investors who need to go long should have a combination of large-cap tech stocks, large bank stocks, and gold in their portfolios.
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The co-chief investment officer said that a "flat money supply" following the Fed's balance sheet contraction, with an S&P 500 that's trading at 20 times earnings, could lead to this correction.
"It's not that we're going to have a pullback anything like March, but we're really poised to have a nice correction somewhere in the 5-10% range that takes a lot of the euphoria out of the market," Gayeski said.Read more: GOLDMAN SACHS: Women portfolio managers are outperforming their male counterparts so far in 2020. These are the 25 stocks they own the most compared to men.
Amid this expectation of a correction, Gayeski is recommending investors who need to go long have a combination of large-cap tech stocks, bank stocks, and gold.
"There's no reason to puke large cap tech but like we said be very cautious now. And at this stage of the game with money supply still at high levels and probably going higher, it doesn't hurt to own some gold," Gayeski added.
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