(New York)
Some financial advisors have a lot of their client portfolios tied up in cash as they await a big downturn. One such advisor, Barry Barlow of Kentucky, thinks that the market is ripe for a 20% decline. "The reason we haven't had a 20-percenter is the artificial stimulus the Federal Reserve pumped into system … That's changing, so it isn't a question of if; it's just a question of when". That said, he thinks that with rates so low, stocks are a must in order to get decent returns for clients, so he and his team focus on companies that trade at major discounts to book value.
FINSUM : The market may be ripe for a 20% fall, but that does not man it is coming anytime soon. This is the kind of mentality that causes one to lose out on a lot of gains.
- stocks
- correction
- Central Banks
- S&P 500
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
