Steve Grasso Prefers Cyclicals Over Tech Right Now
Steve Grasso shared with the viewers of CNBC's "The Exchange" his market expectations.
He thinks the next 30% to 50% of profits are not going to come from the tech. The move higher is going to be driven by the cyclical stocks, like banks, chemical stocks and paper and container products, thinks Grasso.
He still sees Apple Inc. (NASDAQ: AAPL) and Tesla Inc (NASDAQ: TSLA) as the long-term holdings, but he would take off the table 20% or 30% from these stocks and move the money to the cyclical stocks.
Among the cyclicals, Grasso likes Trinseo S.A. (NYSE: TSE) and Westrock Co (NYSE: WRK) and he thinks they're bargains. He is bullish because he expects an increase in demand for packages as FedEx Corporation (NYSE: FDX) announced a 27% year-over-year increase in demand. That also means Amazon.com, Inc. (NASDAQ: AMZN) is going to rally and it's going to need more boxes.
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