Nancy Daoud, Private Wealth Advisor, Ameriprise Financial and the CEO of Opus, joins Cheddar News to give her outlook on the markets and analysis on fallout from Thursday's CPI data.

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Stocks Look to Continue Momentum as Week Draws to a Close

joining us now for more on the markets this morning is nancy Dowd private wealth investor in America Prize financial and the ceo of Opus nancy, thanks so much for joining us, Welcome to the show, how are, you know, stocks kicking off the day? What do you make of the stocks this morning? Um, Give us some insight here? Well, we have yet to see after a big euphoric day yesterday what the market will do today, It may start up up again, but who knows how it will end? Uh, Typically after a very big day like that, there's usually a pullback. But the biggest news of course, like you mentioned is the C. P. I data, which is what everyone is watching. Especially Mr Powell. Um, there's a lot of noise now about whether he will continue to raise rates or not. I would caution everyone to be very, very vigilant of what he said because I do believe he will continue to raise rates. But I think the big news is that we are finally moving in the right direction, but we're not quite there yet. So, um, let's make sure we stay focused and and balanced here for the next few months and into the first quarter of next year. Now, the tech heavy NASDAQ did have a big day yesterday, especially considering tech stocks have taken a major beating this year, especially in the back of, you know, decreased spending and digital ads. So what's your outlook on the tech sector as of right now? Well, I think that if you're, if you had pulled out, it's definitely time to get back in because if nothing else yesterday demonstrated that when the run up occurs, it goes very, very quickly. And if you're not fully allocated and invested already, uh, you will miss the market and you will miss the recovery and that's in the long term. That's, that's that, that's the most devastating of all. So I would urge everyone who's been sitting on the sidelines to reconsider because it's time to be well allocated for your risk tolerance and your timeframe much sooner versus later nancy driving yesterday's rally. Was that consumer price index report showing that inflation did cool in october do you think that yesterday's inflation data and perhaps the consumer sentiment data that we get today will drive the Fed to pull back on aggressive interest rate hikes that we've seen so far this year. You know, it's hard to predict what will happen. But I believe mr Powell and I think that he will continue to raise rates because he was very clear on his objective. Uh, the objective is to reach, uh, north of 5% in the 10 year treasury where, you know, it's actually pulled back to 3.8. Well, now, um, And he also very clearly stated that he needed to see a consistent trend of inflation pulling back and we're not quite there yet. I mean 7.7 is a great number as compared to last month, but it's not the number that he He's looking for to get back to the 3% that we have been accustomed to for decades. So there's still some work to be done and that means more volatility and perhaps a looming recession in in 2023. So I would err on the side of caution and make sure that we are focused on the longer term versus the day to day. That that creates a lot of noise now. Speaking of the longer term nancy, you know, we talked a little bit about attack, but we didn't see a mixed bag of earnings here with some sectors, you know, performing more than others. So, in the longer term, which sectors are you looking at as far as, and would you advise investors to do the same? Well, growth stocks have always outperformed everything by far, but a, you have to have the appetite for the risk or what I call stomach lining for the bumpiness of all of it. Uh, and you have to be in it for at least five years or longer. Uh, but clearly the value stocks or dividend stocks have been in more in vogue more recently because of the volatility. Uh, there's a little bit of reprieve when you're getting some income. Uh, so it really depends on the appetite of each investor and what their goals and objectives are, and most importantly, the timeframe nancy, obviously we've had a lot of different headlines coming in this week. Of course, we have the midterm elections, which we haven't even addressed here with control of Congress, still kind of hanging in the balance. So when it comes to, you know, the market's your outlook, What else are you looking at today? Well, as far as the elections are concerned, the one thing we can all hope for is a divided and, and gridlock, uh, in government because historically, that's always been very good for the stock market. Uh, it just always means that there will be no new spending or tax legislation. So that's good news. Uh, it could easily also allow the feds to do their job a little bit more effectively without all the politics interfering. Um, it is a little, it's annoying that we don't have the results yet, but that's kind of what it means. If we have gridlock. That's a good news for the stock market nancy. Thank you so much for your time and your insight this morning. That's nancy Dowd. Private wealth investor, Ameriprise Financial and the Ceo of Opus