STORY: :: Lisa Bernhard, Reuters
:: Eric Lynch, Managing Director, Scharf Investments
The U.S. unemployment rate jumped to near a three-year high of 4.3% in July amid a significant slowdown in hiring, heightening fears the labor market was deteriorating and potentially making the economy vulnerable to a recession.
Wall Street's main indexes plummeted on the news, but Lynch remains optimistic.
"It's not all doom and gloom," he said. "It just is probably a healthy recalibration for an equity market that has been hijacked by tech."
Speaking with Reuters' Lisa Bernhard, Lynch said there are plenty of companies whose earnings "aren't really impacted by a slowdown in the economy."
They include utilities, real estate, healthcare and consumer staples, Lynch said.
As for the underwhelming July jobs report?
"You know, a few data prints don't make a trend," he said. "Definitely things are slowing. [But] there is still potential for a soft landing."
