Zemsky: Cyclical Stocks, European Assets Likely To Outperform
Voya Investment Management CIO Paul Zemsky was on CNBC discussing equity markets and where they may be headed. Zemsky said Voya has been increasing its exposure to cyclical stocks, saying, “the economy is bottoming. We see green shoots in Europe, green shoots in EM, and we believe purchasing managers around the world are bottoming. That means you want to be more in cyclical stocks.” Looking ahead, Zemsky believes election-related uncertainty could be a challenge starting for U.S. equities in the second quarter, while he believes European assets offer more value. “Europe was pricing negative rates forever, and while we may have zero-ish negative rates, they’re not going to be negative-seventy basis points like we had just a few months ago ... as we see the world’s industrial activity bottoming, European companies should do well,” according to Zemsky.