“What the markets really need to do is price in a recession because it seems like that’s what a weakness in the labor market would ultimately cost,” she said on Bloomberg TV this week.
The market’s been trading in a 3,700-3,800 to 4,300 range for a while now, she said.
“We may need to see a break below the bottom of that trading range to really find dirt-cheap value in equities,” Amoroso said. “We’re just not there yet, so the trade for now is to actually be defensive and to get paid while you wait for this bottom in the market.”
As for the June low, many are seeing an ominous signal in the number. The S&P 500 would have to fall another 2% to reach it.
“Anything that’s lower than where it is now feels devilish,” Kim Forrest, founder and chief investment officer at Bokeh Capital Partners, said in an interview.
--With assistance from Isabelle Lee.
This article was provided by Bloomberg News.