Tags: Adam Mesh | Investors | Tech | Sector | Retail

Adam Mesh to Newsmax TV: Investors Should Embrace Tech, Avoid Retail

Adam Mesh to Newsmax TV: Investors Should Embrace Tech, Avoid Retail
(Don Bayley/Getty Images)

By    |   Thursday, 30 March 2017 09:53 PM EDT

Entrepreneur, stock trader, television personality and author Adam Mesh told Newsmax TV that not every section of the stock market is a safe bet just because investors have enjoyed a bull run since Donald Trump’s presidential victory.

“It's hard to explain how it got here. All of last year seemed surreal in how we went up and then the expectation was going into the election if Trump became president that we'd go down, but then we just continued higher and now it seems that everybody is bullish,” he told Sunday’s “The Income Generation Show.”

U.S. stocks rallied after the November presidential election, with the S&P 500 posting a string of record highs up to earlier this month, on bets that the pro-growth Trump agenda would be quickly pushed by a Republican Party with majorities in both chambers of Congress. Investors, however, have been dialing back hopes that Trump will swiftly enact his agenda, Reuters reported.

“It's just hard to buy up here because everything has come so far already. If you were going to go see Hamilton in New York and you didn't buy tickets because they were $250, would you pay $1,000? It's the same thing right now with the market,” said founder of the Adam Mesh Trading Group.

The S&P 500, in its second longest bull market ever, has risen close to 10 percent since the Nov. 8 election on optimism about Trump's pro-growth agenda. With valuations at their highest in over a decade, investors have been expecting a pullback even if its catalysts haven't been clear, Reuters reported.

“Tech has remained strong, it had a good first quarter that it's finishing up right now and with innovation and growth, tech seems a nice place to be not only for stability but also for upside,” said Mesh, who starred in the 2003 NBC show “Average Joe.” Mesh starred in the spin-off "The Average Joe: Adam Returns."

“The sector I'd stay away from is the retail sector,” he advised.

But he cautions savvy investors to not just hop online and start binge-buying individual stocks.

“What we've seen this year is more money flowing into ETFs than ever before and ETFs are a way of diversifying so you're not tied to an individual stock," he said.

"So, let's say you and I both don't like retail and we want to put a bearish play on. We could do it by trading the XRT, but we would be exposed to Nordstrom's potentially getting bought or takeover talks about Sears. By being diversified, we could be right on retail without the exposure of an individual stock,” said the author of "Full Contact Trading" and "The Average Joe's Ultimate Beginner's Guide to the Stock Market."

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StreetTalk
Entrepreneur, stock trader, television personality and author Adam Mesh told Newsmax TV that despite the bull market since Donald Trump's presidential victory, savvy investors have to know which areas to embrace and which to avoid.
Adam Mesh, Investors, Tech, Sector, Retail
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2017-53-30
Thursday, 30 March 2017 09:53 PM
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