Investors should embrace the volatility, says Hightower's Stephanie Link
Speakers
Stephanie Link
— Chief Investment Strategist, Hightower
Becky Quick
— Co-Anchor, Squawk Box
Summary
Stephanie Link, Hightower chief investment strategist and portfolio manager, discusses Fed day, market volatility, and where she sees stock-specific opportunities. She advocates embracing volatility and adding to positions because the economy and earnings remain resilient, while favoring Wells Fargo, Estee Lauder, NVIDIA, and natural gas/EQT and preferring to avoid SLB and Chevron after their runs. She expects a 25 basis point Fed hike and a relief rally, though she says December is not a foregone conclusion.
- Fed decision and market volatility are the backdrop.
- Link expects a 25bp hike and a short-term relief rally.
- She says the economy, earnings, and consumer credit remain resilient.
- She bought Wells Fargo back after the asset-cap lift.
- She highlights Estee Lauder's turnaround and remains positive on NVIDIA.
- She likes natural gas and owns EQT.
- She is cautious on SLB and Chevron after their strong runs.
- She advises staying stock-specific and using volatility to add.
Ideas
Embrace volatility and add to equities
She expects the Fed to hike 25bp today and thinks the market has a relief rally by getting the decision out of the way; she does not view December as a foregone conclusion because much can happen, but says a 25bp hike will not derail the strong economy.
Buy Wells Fargo post asset-cap lift
She bought Wells Fargo back after previously selling it because the bank is doing good things following the asset-cap lift and bank industry commentary is encouraging on consumer resilience and credit quality.
Estee Lauder turnaround under new CEO
She highlights an Estee Lauder turnaround, saying the new CEO is executing well and the company is working back toward good organic growth.
NVIDIA earnings numbers keep rising
She remains positive on NVIDIA, saying its numbers are only going higher and that creates opportunity even as she stays selective and stock-specific.
Natural gas and EQT attractive
She likes natural gas and still sees opportunities in energy; EQT is a natural gas name she says she owns.
Avoid SLB and Chevron after runs
She says SLB and Chevron are good companies, but their stocks have had nice runs and she prefers other cheaper areas with more earnings-growth and stock-appreciation upside.
