COVID winter 'fears are playing out' as stocks slide: Kirk Hartman, Wells Fargo Global CIO
Kirk Hartman, Wells Fargo Asset Management President & Global CIO, joins Yahoo Finance's Alexis Christoforous and Brian Sozzi to discuss Wednesday's market sell-off, the election's impact on the markets, and much more.
Video Transcript
BRIAN SOZZI: You're seeing the markets get creamed here on Wednesday morning. You're seeing the Dow down about 572 points. The S&P 500 and NASDAQ also in the red, and also the Russell 2000 getting slammed by close to 2% on COVID-19 lockdown fears, not just in the US but also overseas.
All right, we're just a few minutes away from the big tech hearing on Capitol Hill, but first, let's stay on the markets here and bring in Kirk Hartman. He's global CIO at Wells Fargo Asset Management. Kirk, always good to hear from you. Your thoughts on today's sell-off?
KIRK HARTMAN: Well, I don't think the sell-off is surprising. I have been concerned for a while about the corona winter, and I think those fears are playing out. Clearly the market anticipates a very strong 2021, and I think what you want to do here is own those stocks that you want to own at the end of the year and look through this. Volatility is to be expected in this kind of environment, and you know, I think that we're probably going to have more volatility until next Tuesday and then things I think will stabilize a bit.
ALEXIS CHRISTOFOROUS: Kirk, talk to me about how much the election is playing into the volatility we're seeing in the market. And same tip for investors? Should they hold on with the stocks that they want to have for the longer term and sort of see through this election?
KIRK HARTMAN: Well, I think the election will be pivotal in the sense of whether the Democrats, for instance, can control both the White House and the Senate. I think the Street wants certainty over ambiguity. I think at the end of the day, the Street can live with either outcome. They just want to know the rules of the game.
But in terms of holding those stocks through the end of the year, I think you don't change your asset allocation. I do think that on the margin there will be some differences, for instance, if the Democrats sweep both the House and the Senate. I would think that interest rates would back up with the expectation of more near-term stimulus. On the other hand, you could argue that if there is a Trump, at this point probably an upset, given expectations that the market, you know, might rally with the idea that the tax cuts would stay in place. So I can make an argument on either side, but I think in these times you want to look through this.
BRIAN SOZZI: All right. We'll have to leave it there for right now. Kirk Hartman, global CIO at Wells Fargo Asset Management, always appreciate the insights.
