Despite what we've seen in terms of the bear market, a correction, whatever word one wants to use that we've experienced, the market's still pretty expensive. So I say to people is there's an old rule of thumb which is going to sound ridiculously silly, but it's not that far off from what the math actually says it is. Three sectors have dominated the S&P 500: technology, communications and consumer discretionary. If you go away from those three sectors, I think you're going to find valuations are more conservative and the menu of opportunities is monstrous.
Shoppers may need to switch from steak to bologna, but they still need to eat. That’s just one reason for investors to watch consumer staples if you’re concerned about a recession.
Richard Bernstein is the CEO and Chief Investment Officer of Richard Bernstein Advisors. Before that he was the Chief Investment Strategist at Merrill Lynch. Motley Fool Senior Analyst John Rotonti caught up with Bernstein to discuss:
- How growth stories can change through time. - Sectors showing the power of compounding dividends. - If a “Fed Put” still exists.
Members of any Motley Fool service can watch the full interview here: https://www.fool.com/premium/live/video/4056/coverage/2022/11/16/interview-richard-bernstein-ceo-cio-richard-bernst/
Host: John Rotonti Guest: Richard Bernstein Producer: Ricky Mulvey Engineers: Heather Horton, Dan Boyd
Learn more about your ad choices. Visit megaphone.fm/adchoices