Top strategist calls market bottom

Chief investment strategist at BMO Capital Markets, Brian Belski, explains why there's no fundamental reason for the market's scary October performance.

Posted: Nov 1, 2018 11:21 AM
Updated: Nov 1, 2018 11:26 AM

After a scary October, the stock market could have a winning November.

The Dow rose 241 points Wednesday, or 1%. The Nasdaq jumped 2%, while the S&P 500 climbed 1%. The solid trading session follows a strong Tuesday in which the Dow soared 432 points.

The Nasdaq's gains Wednesday trimmed its monthly decline to 9.2% — still the index's worst month since November 2008. The S&P 500 ended the month down 6.8%, its steepest decline since September 2011.

Expect stocks to get back on track following this month's pullback, Brian Belski, chief investment strategist for BMO Capital Markets, said Wednesday on CNN's "Markets Now" live show.

Belski described the dip as "very normal and very healthy."

"We never like to see people lose money, but we needed to take some complacency out of the market," he said.

This stock market had an extremely volatile month. Big Tech stocks plunged as earnings growth slowed, interest rates rose and the threat of a longer China trade war intensified.

But concerns that corporate earnings would falter were overblown, according to Belski.

"Everyone was nervous about earnings for no good reason," he said.

Weak results from industrial companies such as 3M (MMM) and Caterpillar (CAT) did push down markets last week, but the index raced back by day's end.

"We think this is a bull market correction within a very large secular longer-term bull market," Belski said.

Now is the time to put money into American stocks, he continued. After the credit crisis, investors risk playing too much defense, he said.

"American companies are the strongest of the world, with the most consistent earnings growth," Belski said. "You need to be a buyer of American stocks, and we're here to stay."

"Markets Now" streams live from the New York Stock Exchange every Wednesday at 12:45 p.m. ET. Hosted by CNNMoney's business correspondents, the 15-minute program features incisive commentary from experts.

You can watch "Markets Now" at CNNMoney.com/MarketsNow from your desk or on your phone or tablet. If you can't catch the show live, check out highlights online and through the Markets Now newsletter, delivered to your inbox every afternoon.

Minnesota Coronavirus Cases

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Reported Deaths: 9462
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Ramsey722701040
Dakota66032572
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Beltrami801794
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Douglas7689100
Itasca752796
Mower721349
Winona702756
McLeod694483
Isanti681383
Steele669431
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Todd483642
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Iowa Coronavirus Cases

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Cases: 516453

Reported Deaths: 7289
CountyCasesDeaths
Polk80319799
Linn32142424
Scott26637292
Black Hawk21974378
Woodbury20490258
Johnson19778105
Dubuque18515241
Pottawattamie15890213
Dallas15320113
Story1380258
Warren8450104
Cerro Gordo7964123
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Webster7326122
Des Moines7098105
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Wapello6441144
Jasper619591
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Marion557897
Buena Vista502149
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Jones404862
Bremer395372
Washington391463
Boone389739
Carroll367755
Mahaska365365
Crawford353747
Dickinson314655
Jackson307747
Buchanan305741
Clay295536
Delaware294654
Kossuth289077
Fayette286353
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Tama279777
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Hamilton259857
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Floyd255449
Clayton244459
Poweshiek237243
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Harrison234379
Cass233466
Butler232744
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Mills220930
Winnebago215938
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Cherokee211347
Lyon206142
Appanoose205357
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Calhoun196919
Shelby196442
Union191141
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Grundy183637
Franklin183029
Mitchell182043
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Emmet178246
Louisa176953
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