Invesco's Hooper: Covid and the Fed will determine if market hits its potential

Money Life with Chuck Jaffe

Kristina Hooper, chief global market strategist at Invesco, expects reasonable growth for the economy and the stock market into next year, but notes that depends on the Federal Reserve successfully managing interest rates, and Covid variants not re-igniting the pandemic to where consumers shut down even if the economy remains open. She expects secular growth and defensive stocks to be the outperformers as the economy moderates and returns more to normal; cyclical stocks and small-cap companies will see their recent outperformance end closer to the end of the year as growth slows. In the weekly NAVigator segment, John Cole Scott, founder/executive chairman of the Active Investment Company Alliance and chief investment officer at Closed-End Fund Advisors discusses how the right mix of issues in these vexing low-rate times can create 'synthetic bonds' that deliver above-average income to fuel investors' lives. Also on the show, technical analyst Michael Sincere, author of 'Understanding Options,' says he would not be surprised to see a market reversal -- potentially as big as a 10 percent correction -- in the next three months, and Dave Mazza of Direxion talks about the new ETFs the firm is cooking up and the investment themes he sees as interesting opportunities now.