Market narrowness has returned, says Neuberger’s Joe Amato

Summary

Joe Amato discusses market narrowness with tech dominating the rebound, strong earnings supporting equities, and the impact of Iran on oil. He recommends staying overweight global equities and using pullbacks to add to positions.

• Market narrowness has returned with tech and semiconductors leading the rebound.
• S&P 500 earnings are at all-time highs and expected to grow double-digits.
• Oil price threshold for demand destruction is $150-$175 for six months.
• Fed is expected to cut rates one or two times in the second half.
• Neuberger is overweight global equities and recommends buying pullbacks.
• Tech sector earnings are expected up 30% this quarter.
• Broadening out theme may resume as non-tech earnings improve.
• Global economy is 50% less energy intensive than in the early 1990s.