A Wall Street chief strategist says US lawmakers need a deal on fiscal aid – even a small one will help save consumer spending

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Summary List PlacementCrossmark Global Investment’s chief market strategist Victoria Fernandez told CNBC’s “Trading Nation” Tuesday US lawmakers need to decide on a fiscal package, even if it is smaller in size, to save consumer spending.
She said consumers have almost spent their consumer checks which is worrisome going into the holiday season.
“Even if it is a smaller number, or a one-time check, it is going to give support to that consumer as we go into the last quarter of the year and that is where you need to start looking at your portfolio to balance that out a little bit,” she said.
She said investors should look at a combination of growth and value stocks, as well as different segments of the financial services sector to weather uncertainty.
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US lawmakers need to decide on a fiscal stimulus package, even if it is a smaller one, to prop up consumer spending, particularly going into the holiday shopping period, Victoria Fernandez, chief market strategist at Crossmark Global Investments told CNBC’s”Trading Nation” Tuesday

“We really need that consumer to hang in there. For that to happen, we will need to see another round of stimulus, even if it is a smaller deal, or not the $600 we saw before,” she said. “Even if it is a smaller number, or a one-time check, it is going to give support to that consumer as we go into the last quarter of the year and that is where you need to start looking at your portfolio, to balance that out a little bit.”

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With around 10 million Americans still out of work, many consumers will have long since spent their first round of stimulus checks and will likely be relying on savings at this point.

“If you look at consumption right now it is holding up, but if you look at revolving credit as a percentage of the debt households have right now, it is very small and lower than average. Which means they are spending the cash that they saved,” Fernandez said. “They are spending that extra unemployment insurance they had, if that dries up, especially as we are going into the holiday season, we will have some concerns there.”

Read more: Morgan Stanley lays out its 5 favorite trades for investors looking to dominate a looming V-shaped recovery, even if a stimulus deal takes until 2021


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Source:: Business Insider

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