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With the election just one week away, Tim Chubb, Girard CIO, joins Market Domination to discuss how investors can best navigate the market ahead.
Girard recommends "shifting into neutral" as the election will be "divided and controversial."
He tells Yahoo Finance, "I think it's important just to take a step back, focus on the fundamentals, be selective. I mean, this has definitely been a great quarter from a stock-picker standpoint given the beats that we've seen have been rewarded really favorably, more so than prior quarters. And so we're relatively neutral across our equity strategy."
He encourages investors to focus on under-appreciated cyclicals like banks and to take profits on the fixed-income side when rebalancing portfolios.
"I think corporate balance sheets are really in great shape. But as topline slows and we start to see sort of the refinancing environment that we've been in, a lot of these companies have had debt that's set to mature in the next year or two, or in some cases, just recently. And that's ultimately going to put pressure on profit margins as well. So it's a little bit of a double-edged sword for small caps," he concludes.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
This post was written by Melanie Riehl