Market Volatility Looms Amid Tariff Uncertainty and Economic Optimism

NEW YORK, March 5 — Amid ongoing turbulence in the stock market, experts Paul Hickey and Phil Camporeale appeared on CNBC‘s ‘Closing Bell Overtime’ to discuss the impacts of tariff policies on growth projections. They addressed investor concerns about volatility and economic prospects as markets experienced a downturn.

Camporeale, co-founder of Bespoke Investment Group, and portfolio manager at JPMorgan Asset Management, emphasized that while policy uncertainty looms, the U.S. economy remains robust. Currently, the unemployment rate stands at 4%, with a GDP growth rate of 3% and healthy corporate balance sheets, suggesting a firm foundation.

‘Despite the turbulence, recession risks appear low,’ Camporeale said, maintaining a relatively optimistic outlook. He noted that JPMorgan has adjusted its equity exposure, decreasing from a 10% overweight to a 5% as the firm reallocates investments across U.S., developed non-U.S., and emerging markets.

He also credited the potential for positive policy shifts from the current administration, particularly in fiscal and deregulation areas, as key elements that may drive market performance in the long term.

Hickey, who leads Bespoke Investment Group, echoed concerns about market unpredictability stemming from recent tariffs. He referenced comments made by Target CEO Brian Cornell, indicating uncertainty surrounding tariffs and their potential economic impact.

‘This stew of uncertainty breeds caution among investors,’ Hickey stated, emphasizing that rallies followed by policy announcements can lead to sharp downturns.

He cited historical context, noting that since World War II, the S&P 500 has seen 64 instances of a 5% drop from all-time highs, cautioning investors about navigating these volatile waters.

As markets operate under a cloud of uncertainty, Hickey and Camporeale predict that these influences on investor sentiment will likely persist moving forward, shaping market behavior in the near term.

In addition to market analysis, both experts pivoted to discuss the most undervalued U.S. stocks favored by hedge funds. Recent data compiled using the Finviz stock screener highlighted stocks with forward price-to-earnings ratios under 15 that are favored by elite hedge funds.

‘Hedge funds often accumulate positions in stocks that show strong growth potential,’ Hickey stated. ‘Our research indicates that mimicking these top stock picks can lead to outperformance in the markets.’

The listed top stocks for investment consideration included notable firms like Merck & Co., Pfizer Inc., and Capital One Financial Corp., all of which demonstrate favorable forward P/E ratios amid a structurally sound economic backdrop.

Overall, while uncertainty surrounds tariff policies and market movements, both experts remain engaged in identifying and promoting stocks that show greater promise amid the evolving financial landscape.