This post was originally published on this site
Wilson has urged investors to stay positioned defensively after we witnessed one of the worst quarters on record when it comes to equities and bonds. Going forward, Wilson is more constructive on bonds than stocks over the near term amid growth concerns.
“While 1Q was rough for most stocks, the second half of March was exceptionally strong. The rally was predictable from a technical perspective, but it was always a bear market rally in our view, and now we think it’s over. Our analysis of Friday’s ISM manufacturing survey shows the orders component is now below inventories for the first time since the expansion began. This book to bill proxy for the broader manufacturing sector suggests meaningful downside to the headline ISM over the next few months, which does not bode well for the S&P 500,” Wilson said in a client note.
Boring is beautiful, concludes Wilson, after reiterating his advice to investors to double down on defensive sectors.
By Senad Karaahmetovic
