Disney and Activision to rally for the rest of the year: money manager
Halloween isn't the only reason October can be spooky, the month can also be scary for investors.
But not all money managers believe in the ‘October Effect’ – a theory that stocks tend to decline in the month.“If you go back to 1928 and look at October, It's actually positive about 57% of the time so historically there have been some really bad things that happened in October but by and large it's a positive month,” said Bob Phillips, who manages approximately $500 million for Spectrum Management Group.
A recession is not in the cards for the money manager so he thinks the market’s worst is behind us. “We tested the lows towards the end of September and likely we're in a rally towards into the end of the year,” said Phillips.
Phillips is not waiting on the sidelines but putting his money to work in stocks like Walt Disney (DIS) and Activision Blizzard (ATVI).
Get the Latest Market Data and News with the Yahoo Finance App
Walt Disney
Phillips finds all of Disney’s various business segments attractive. He also points out that Disney has the advantage of being a content company and no matter how media is delivered content is key.
He suggests right now is a good entry point with “Disney is about 20% off its high.” Along with near-term catalysts in store including “a park opening in Shanghai…and Star Wars coming out in December,” he said.
Activision Blizzard
Few sectors are immune to the uncertainty in rates and turmoil in oil like technology. Activision is a name Phillips likes in the space, “the gaming company actually held up incredibly well to the entire selloff,” he said.
“I think that the stock has a lot of momentum and coming into the holiday season…we’re likely to see that momentum continue and the stock do quite well,” said Phillips.
More on Yahoo Finance
Accenture North America Chief Executive: U.S remains global innovation leader
The Fed has a credibility issue: Wells Fargo co-head of Global Fixed-Income
Alcoa and Yum! earnings to reflect China's economic collapse: Estimize
