Will the U.S. Stock Market Go Into a Correction?
Will the U.S. stock market rally into the second half of the year, or will it go into a correction? That’s the big question for investors everywhere.
So far this year, the S&P 500 index is up more than 8.5% and has closed at several new record highs. But in recent weeks, stock trading has become volatile as investors worry about geopolitical issues, rising interest rates, and a pullback in tech stocks, especially tech darlings like Apple, Google, and Facebook.
Fortune turned to Ally Financial’s CEO Jeffrey Brown for some answers and investment advice. Ally manages nearly $5 billion for 250,000 customers. Brown says there are still buying opportunities for investors and he is optimistic about the outlook for stocks.
“We would continue to call for strong markets for the future,” he says. “Areas like financials and energy have room, I think, to improve relative to tech and retail that have been on a very strong bull run.”
But he also has concerns. “Obviously global uncertainty is a big one,” he says. “Certainly the situation in North Korea is top of mind. Overall Russia. Overall state affairs in Washington, D.C. make it a pretty volatile outlook.”
Watch the video above for more of our conversation with Ally Financial’s CEO.