Chris Wood suggests investors to use dip to increase allocation to cyclical sectors – News 24-7 Live News 24-7 Live
Chris Wood suggests investors to use dip to increase allocation to cyclical sectors

Chris Wood suggests investors to use dip to increase allocation to cyclical sectors

  • Christopher Wood, global head of equity strategy at Jefferies, remains bullish on equity markets despite the recent selloff.
  • The recent decline in Indian markets has been due to concerns over the possibility of fresh restrictions to curb the spread of COVID-19.
  • The focus will grow in coming weeks on the scale of the Biden administration’s pending infrastructure stimulus, he said.

Christopher Wood, global head of equity strategy at Jefferies, remains bullish on equity markets despite the recent selloff. On his weekly note, GREED & fear, Wood advised investors to use the dip to increase allocation to cyclical sectors.

“There has been a bit of a pullback in the cyclical trade. This, in GREED & fear’s view, is nothing more than profit-taking as the end of the quarter approaches after the big price gains recorded. For such reasons, GREED & fear views the pullback as a buying opportunity to add to cyclical exposure,” Wood said.

The recent decline in Indian markets has been due to concerns over the possibility of fresh restrictions to curb the spread of coronavirus. Moreover, weak global cues, a spike in bond yields also weighed on the sentiment.

News Source: CNBC TV 18

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