Strategist

Don’t expect shale to rise like “phoenix from the ashes”: Oil strategist

Don’t expect the U.S. shale industry, battered by the pandemic and an oil price war earlier this year, to move into strong growth levels any time soon, says one oil expert.

“There are those who think that shale will still rise like the phoenix from the ashes like it has, in the previous downturns,” Vandana Hari, founder and CEO of Vanda Insights, told Yahoo Finance’s The First Trade.

“I think that shale has taken a really hard knock this time. It will be very hard for it to come back,” she added.

“It’s a very debt-dependent sector, unlike a lot of other oil and gas producers globally. And I think the investors have soured quite a bit on the shale sector; they’re just not going to be ready to jump back in.” said Hari.

A study by Deloitte shows when crude futures are at $35 a barrel, about 30% of

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President Trump is great for your 401(k): strategist

The verdict is far from certain here, but Wall Street strategists continue to believe President Trump winning re-election would be better for your longer-term investments than a president Joe Biden (and most definitely, a “blue wave” sweeping through the House and Senate).

“I think President Trump is far better for the economy,” said veteran strategist Michael Lee of Michael Lee Strategy on Yahoo Finance’s The First Trade. “When you had the Biden/Obama recovery it was decent for the financial markets, but not so much for 401(k)s or those at the lower end.”

The president did his part to spark concerns on the part of households that own stocks at his rally in Tulsa, Oklahoma over the weekend. Trump noted several times that 401(k) plans would be at risk if he weren’t re-elected as president — it’s likely to be a mantra used at length by Trump on the campaign trail

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Likely to see a second wave of stock selling instead of a second wave of COVID-19 cases: strategist

Before there is any form of “second wave” of COVID-19 globally, the stock market may first experience a second wave of selling as it once again prices in worse-case scenarios for economies and companies.

“We think you’re more likely to see a second wave down from markets as opposed to a second wave up in COVID-19 — we have concerns here,” said FBB Capital Partners director of research on Yahoo Finance’s The First Trade. Bailey pulls no punches on how bad a second wave down in markets could be — the benchmark being the 35% downdraft from the late February highs to the March 23 lows for the S&P 500.

Continued Bailey, “I don’t know if it will be as bad as the first wave [of selling]. It could be half that bad. You take a look at valuations for the S&P 500 now and we’re back to dot

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Trump would be better than Biden for the stock market: strategist

With 141 days until the presidential election, Wall Street strategists are starting to weigh in on who would be better for investors: the socially divisive President Donald Trump and his favorable corporate tax policies or a consoler in chief in Joe Biden with his likely higher tax structures.

Veteran strategist Frances Newton Stacy is the latest to toss her hat into the smoldering debate.

“From a stock market perspective, President Trump would be better,” Stacy, who is director of strategy at Optimal Capital, said on Yahoo Finance’s The First Trade. “The reason I think — well not withstanding the last election — but I think Biden has already come out with talk about raising taxes pretty dramatically to compensate for the debt we’ve had recently. And I think that market participants are looking for lower taxes. I know Trump has floated ideas for asking for a tax cut.”

Biden has

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More pain ahead likely after ‘recipe for serious profit taking’: Charles Schwab strategist

A “recipe for some serious profit-taking” led to Thursday’s sudden market plunge — and some more sell-off days are likely, says one strategist.

“I would be surprised if we just had one day of weakness, and then we whistled back to work tomorrow,” Liz Ann Sonders, Charles Schwab chief investment strategist, told Yahoo Finance.

Sonders says concerns over a second wave of COVID-19 in some states “have brought some jitters into the market.”

“There was so much economic froth that was starting to build in the markets, particularly among really small traders,” she added.

Fed Chair Jerome Powell’s comments yesterday also caused concern among investors.

“He certainly wasn’t reinforcing the recovery is around the corner, ‘nothing to worry about here’,” said Sonders. “So I think it was just a recipe for some serious profit-taking, especially given where you’re seeing the weakness concentrated.”

She pointed to recent head-scratching moves in shares

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