Tags: pnc financial | jeffrey mills | energy | financial

PNC's Jeffrey Mills: Buy Energy, Financial Stocks Amid Market 'Reset'

(Zimmytws/Dreamstime)

By    |   Friday, 22 June 2018 05:31 PM

PNC Financial's Jeffrey Mills says that while the stock market might hit the “reset” button there are two groups which could deliver solid profits.

The firm's co-chief investment strategist told CNBC's "Futures Now" that it will be hard to replicate last year's record gains. He referred to 2018 as a "reset year" as stocks retrace.

"The market is catching its breath," Mills said. "There's going to be a continued push and pull between strong fundamentals. So, we have solid growth [and] really good earnings, but then multiples that have come down," Mills said.

Mills cited energy as one of his top investment picks.

"I would tactically use this weakness if you are underweight energy to start to add. It looks like the commodity is starting to firm here around $66 [a barrel.] It was overbought, so we're consolidating here," he said.

Mills also favors financials, which have tumbled about 2 percent so far this year.

"We continue to like the banks. We don't think it's as much as a rising rates story as it is a deregulation and loan growth story," he said.

"Reset year to me means probably the worst-case scenario isn't that bad, but the best-case scenario isn't that good. So, I'm thinking something in the 4 to 7 percent total return range," Mills said.

Mills isn't alone in his bullish investment advice.

"When a stock (or the overall market) falls even 5 to 10 percent, instead of thinking about bargains, most investors head to the exit. That’s a panicked reaction," Newsmax Finance Insider Andrew Packer recently wrote. 

"I’m not saying investors should blindly buy any market dip either. But a sizable drop in the stock market is a time to slow down, take a close look at what you do own, and see if the fundamental reason to own shares have changed," he wrote.

(Newsmax wire services contributed to this report).

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PNC Financial's Jeffrey Mills says that while the stock market might hit the “reset” button there are two groups which could deliver solid profits.
pnc financial, jeffrey mills, energy, financial
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2018-31-22
Friday, 22 June 2018 05:31 PM
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