Wells Fargo's Cronk: The full (negative) impact of Fed moves hasn't hit yet

<p>Darrell Cronk, chief investment officer at <a href= "https://www.wellsfargo.com">Wells Fargo Wealth and Investment Management</a>, says the <a href= "https://www.saf.wellsfargoadvisors.com/emx/dctm/Research/wfii/wfii_reports/Investment_Strategy/outlook_summary.pdf"> slow-developing impacts from the Federal Reserve's monetary tightening policy 'still lies before us</a>,' putting the market 'in a vulnerable spot' as it enters August, September and October, historically the toughest months of the year. As a result, he expects a 'tactical correction' late this year, and urges patience while that plays out. Also stressing patience on this show is Jason Brown of <a href="https://www.thebrownreport.com">The Brown Report</a>, who notes that the market has hit a band of resistance short of returning to all-time highs and he expects it to struggle to break through, although he thinks support levels will hold up because the negatives have been priced in. He expects a choppy, range-bound market that works well for options and covered-call strategies but is hard on directional traders who need bullish or bearish trends. Plus, Scott Caraher, head of senior loans at Nuveen says rate hikes are stressing low-rated companies and are likely to spur new defaults, but also creating opportunities in higher-rated paper that can get through the economic downturn and thrive when rates eventually start to reverse their course</p>