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The possibility of a government shutdown looms as Congress is unable to agree on a spending bill. Mariner Wealth Advisors chief investment strategist and head of equities Jeff Krumpelman joins Julie Hyman and Madison Mills on Morning Brief to talk about what uncertainty in Washington D.C. means for investors.
"We still have, if you look longer term, a positive view, and we see further advancement in the S&P [500] (^GSPC) as we move through 2025," Krumpelman says, adding the firm 2025 year-end target for the index is 6,600.
The strategist says, "I don't think any of this news flow adjusts that kind of [bullish] thinking because the fundamentals in terms of economic growth, employment data, earnings data remain pretty positive. I think this market was ready for a pause. And despite the good fundamentals, we've gotten [a] valuation that's full."
"We remain positive. We know what we want to own [in the] near term. The market's saying, 'Hey man, I need a rest,' and there's some headline risk out there, whether it's Fed policy or it's news out of Washington, and people get wiggy about that."
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Krumpelman says tech "sports some of the strongest earnings growth amongst the S&P 500 sectors," but he cautions investors to "be very selective in what you own in semiconductors" with names like Nvidia (NVDA) and Taiwan Semiconductor Manufacturing Company (TSM). He highlights the cybersecurity space and workflow management solution providers like ServiceNow (NOW), as well as data center cloud plays.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
This post was written by Naomi Buchanan.