The man in charge of building investment strategy for Wells Fargo Securities won’t put new money to work in stocks right now.
Christopher Harvey believes the market is too vulnerable to another correction and a 50% surge in volatility.
He lists two troublesome forces for his decision: A potentially contested presidential election and the latest uptick in coronavirus cases in the U.S. weighing on stocks a bit longer.
“The market has a tendency to shoot first and ask questions later when it comes to Covid,” the firm’s head of equity strategy told CNBC’s “Trading Nation” on Friday.
Excluding risks associated with the election, Harvey estimates in a recent research note the newest coronavirus headlines alone imply a 2% to 4% downside from current levels.
He highlights the danger in a chart of