1.) U.S. small- and mid-cap stocks, which have had a very big run already.
2.) U.S. consumer discretionary companies – including retailers, hotels and restaurants — because I think they’re dependent upon a consumer that hasn’t fully come back yet.
3.) Defensive sectors like utilities, which are likely to suffer if interest rates rise further in 2014.
What’s your take on where to enter the market today?
Russ Koesterich, CFA, is the Chief Investment Strategist for BlackRock and iShares Chief Global Investment Strategist. He is a regular contributor to The Blog and you can find more of his posts here.
Source: BlackRock Investment Strategy Group Research