What's Driving the Risk-Off Sentiment in Markets?

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March 28 (Bloomberg) -- Affinity Investment Advisors' Jeremy Hill discusses the outlook for U.S. stocks with Olivia Sterns on Bloomberg Television's "Street Smart." (Source: Bloomberg)

But you are right.

The real risk in the market has transitioned from geopolitics to said and now we are wondering whether or not the high beta, high momentum stocks transfer over to the s&p or broader equity markets.

If you look closely at some of the bloomberg groupings, you will see that leisure stocks are down something like 15%. what does it mean, there's a lot of dispersion in the s&p 500. active management strategies are actually en vogue.

Do you think stocks are cheap at these levels?

I would not call them cheap.

Fairly valued.

Yes, but again, when you look at various variations, you want to find opportunities available.

What is the mood out there among the investment managers that you speak to.

Is it already this big pivot and we are going to a broader selloff?

I'm not a fan of psychology or anecdotes but this has been troubling in that i have seen some very experienced managers who take a little more caution in the last couple of days fan they have previously.

I'm not suggesting that the bulls are becoming bears but it feels like risk managers are focusing on hedging rather than new money opportunities right now.

What is driving the risk off sentiment?

If you look at the rate curve, obviously the 30 year is suggesting that we are men and environment -- that we are in an environment of anemic growth.

They are dubious about the weather playing a role in the environment and the economic growth path.

First quarter starts next week.

What is your outlook?

Cliff not very good.

We are looking for a growth in earnings.

It does not mean we will not get upside surprises.

The companies have ratcheted down expectations.

Maybe the upside surprises that we should be looking at the this the end of the year we want to focus on.

What is your year and target -- year end target?

And looks that the gdp will grow.

Expect doom and gloom but from a quantitative stance, you are still able.

Jeremy hill, thank you.

But does it for "on the

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