Kolanovic made the comments Friday, when the S&P 500 rallied 2.4% from the May 12 close of 3,930.08. It slumped Wednesday to close back at 3,923.68. He wasn’t immediately available to offer fresh commentary after that drop, though he had said in the interview that he’s taking a longer-term perspective with his view.
US equities posted their worst rout since June 2020 on Wednesday as investors assessed the impact of higher prices on earnings and monetary-policy tightening on economic growth. The slide extended this year’s selloff in the American equity benchmark to about 18%. S&P 500 futures fell 0.9% at 8:04 a.m. in New York Thursday.
As for specific levels on the benchmarks that should attract interest, Kolanovic says now isn’t the time for broad-brush strategies because gauges like the S&P 500 have some expensive stocks and some cheap ones. He sees significant opportunity in innovation, biotechnology and international growth shares, but recommends staying away from defensive companies such as dividend-payers and staples -- which are expensive in his view.
“I almost refuse to talk about ‘where should I buy S&P?’” he said.
This article was provided by Bloomberg News.