Lori great to see you we're obviously Seeing a lot of volatility right now but Ultimately Does it end up in the same place i.e the Market buys the dip I think so i think it's a question of You know how low it goes from here does It go lower from here i wouldn't be Entirely surprised if friday turned out To be the lows um but i think the Reality is one of the the guests you Just quoted a moment ago mentioned she Had mentioned retail investors i don't Know that they've stepped in to buy the Market in a big way yet if you look at The aai survey from last week they had Actually taken a bearish step even Before this news came out so i think That's one positive underpinning of Support that's still yet to come And when we look at institutional Investors you know i think they're Taking mostly a wait and see approach at This point in time we did a survey Yesterday afternoon um and after biden Spoke and we found that most people in Our survey said they're not really doing Anything with their portfolios yet they Need more information um so i think Sentiment is a precarious thing but i Think you are right i think we're going To end up in the same place with buying The dip i think it's the near term That's a bit uncertain also lori uh um i
Did find your survey quite interesting But i guess the question really becomes What do they do what do they buy so if They're not gonna buy the dip yet when They do what's it gonna be So if you look at friday's price action Versus yesterday's price action you saw Two very very different markets friday Was you know kind of panic and fear and Defensives floated to the top things Like healthcare and staples and Yesterday we saw the secular Growth-oriented sectors like technology Do quite well and we're seeing that in Early trading again today and i think at Least while we're in this information Vacuum while we're trying to figure out Exactly where this virus is headed this Variant is headed i think investors are Going to not go back into defensives i Think they're going to go back into what They were buying yesterday and this Morning they're going to stick with tech Consumer discretionary and those sorts Of things and we saw actually really Interesting tidbits of this in our Survey among those who are actually Doing something with their portfolios And it's a minority um but it was sort Of split between those who said they're Buying secular growth and quality around 20 of the survey respondents and then There was another bunch similar percent That was buying cyclical so you have a
Camp that's behind the dip and they are Split between whether or not they're Buying aggressively or buying cautiously My money is on cautious buying for at Least the next few weeks Laurie we're going to hear from the fed Chair in just a moment speaking on Capitol hill do you think he's got the Markets back I think investors are confused about Where the fed is going i mean that's Something we probed in our survey as Well just to figure out what the Market's pricing in and we found that Almost half think there's going to be no Impact on the taper in terms of hike we Found that there's a decent minority Around 20 or so again that think that Hikes get pushed back but we also saw a Similar number who said that it wouldn't So i think we're going to take a lot of Cues off today's testimony yeah and We'll get deeper into that in just a Moment um i wonder lori you mentioned Sort of what they're going to buy on the Dip but over the next four weeks we're Going to have some rebalancing into the End of the year typically we talk about That santa claus rally and i want to Know kind of what you think these next Four weeks are going to bring are we Going to see more sell the winners kind Of thing I think we're going to see people grow
Back into the longer term structural Winners which is going to be sort of the Tech stocks the internet stocks um some Of those big kind of secular growth Oriented consumer discretionary names You know we've seen areas like energy And financials have quite a good year um I don't necessarily think that you're Going to see people you know kind of Trying to buy some of those trades on Very recent weakness i think people are Really going to be focused on just sort Of the longer term stocks that they Happen to like and look and look for Safety in those kinds of names i don't Know if we'll see that kind of typical Like leaders laggards trade like we Normally see What about the financials in all of this Lori The financials are held hostage to bond Yields i mean that's really all you need To know about how that sector is going To trade relative to the broad market um And i wish you know as a strategist i Could give you better color than that They're super cheap i think that they Look great outside that bond yield issue And i think once the value trade gets Going again it's going to be a fantastic Place to be but i do think that it could Be challenged in the short term you know One thing that we've seen historically Value doesn't work when cova cases are
Rising Uh what about oil Oil i think is even you know a little Bit more challenged in the short term Than or i would say the energy sector Rather um than the financials because i Do think that you know sort of regular Investors are willing to make bets and Financials but i think that energy just Tends to get caught up in kind of the Oil macro trade and so when you're Really scared on the macro that is an Easy place to pull some funds
