Stocks rally, ending 6-day losing streak
S E E D E D C O N T E N T
Stock Photo. Brendan McDermid/Reuters
For some experts, volatility presents a unique opportunity to buy.
“Historically, investing on volatility spikes leads to above average returns in subsequent months,” Jonathan Golub, an analyst with Credit Suisse, wrote in a note Thursday. “[We] believe that investors should opportunistically extend risk against this higher volatility.”
UBS’s Keith Parker observed that valuations have gotten much more attractive, and he believes we should see a rebound. The S&P 500’s 12-month price-earnings ratio is “now at 15.5x, over 1.5x below average levels prior to the onset of trade concerns and near the lows of 2016,” Parker said.
Of course other "experts" disagree.
My thoughts-? Now more than ever it's time to proceed with caution-- whether you intend to be a net buyer or seller. Know what you're doing-- don't trade on impulse!
IMO the overall economy is doing well. My main concern is the negative effect tariffs will have on the economy-- particularly those on China. I don't think the full impact of that is being felt yet . . .
Also sanctions on Iran will result in the rise in oil prices . . . bad for business, bad for consumers.
scotty08.mp3
LOL-- great link!
I haven't been trading much recently. A few weeks ago I felt we were due for a correction-- so I sold some stock. (But I couldn't predict t he date of the correction).
Wednesday and Thursday I didn't trade at all. However I did predict the end of that two day disaster would be today, and that the market would be up.
And it was, at least for now, so I had planned to "swipe left" on Tinder today (to coin a phrase :^)
Their parent company Match had been one of my biggest gainers, (and had a nice pop today-- over 5% on the day!) so I liquidated my position for a nice profit.
(Also wanted to raise a little cash due to market uncertainty-- mainly due to my guess that the problems due to Chinese tariffs may be worse--- and last considerably longer then the previous estimates)
Recently Trump was unusually mild-mannered in his criticism-- he merely said that "the Fed has gone crazy".
In response, one of America's top comedians-- the insouciant Jim Cramer-- had an interesting response:
Trump called the Fed crazy for raising rates. "I agree with President Trump that the Fed needs to tighten less aggressively, even as he probably shouldn't have said those nasty things in public because he's making it harder, not easier, for Jerome Powell to give him what he wants," Cramer opined.
"I don't think it's gone crazy at all. I think it's gone lazy. It's a shame," he concluded.