Now is not the time to buy the dips. The S&P 500 was higher on Tuesday, a day after the broader index had its worst day in nearly two years as fears of a recession renewed. The broader market index fell 3%, its largest one-day drop since 2022. .IXIC 5D Yamagata Nasdaq Composite Index That doesn’t mean now is the time to get back into stocks. Many market watchers have yet to give a clear signal on the sell-off, as they expect stocks have some way to go before hitting bottom. “Have we seen the worst yet?” Thomas Salopek, head of cross-asset strategy at J.P. Morgan, wrote on Monday. “We look at the history of bottoming signals, which suggests there’s more pain to come.” The strategist said the current pullback has all the hallmarks of a market correction. These include a renewed steepening of the yield curve and a defensive lead. But the market has yet to get the “full set of ingredients” for a market bottom, including a flattening of the 20-day moving average slope and improving market breadth. “Whether or not the next jobs report in four weeks confirms a worsening in the unemployment rate, we recommend using risk-based technical signals to manage positions,” Salopek continued. “For now, buying the dip is still a good idea. It’s too early.” Mark Malek, Siebert’s chief investment officer, said investors should wait for the stock market to hit bottom before piling into the stock market. “We often tell our customers, ‘It’s better to leave money on the table than throw it in the trash, right? So don’t rush to catch a dropped knife,'” Malik said. “Wait until the market normalizes and starts trending again, then you can start to nibble away and get back in.” Malik added: “Right now, there’s no reason to try to find cash at the bottom by waiting and watching.” CFRA’s Sam Stovall predicts S&P 500 The index will pull back 10% to 15%, and he said he is watching more bulls capitulate before the correction is over. “People need to test their beliefs before they’re willing to sell, and that’s what’s happening right now,” Stovall said. “A lot of people are saying, ‘Well, you know, I think the market should be pricing in gains, but I really Wouldn’t worry about it. I’d look at it as a buying opportunity. ‘Well, who’s going to sell if everyone thinks that?’ So you need to change your belief or forecast for that to happen. The S&P 500 was trading about 7% below last month’s all-time high on Tuesday. Strategas’ Chris Verrone also thinks it’s too early to start getting into the market, saying they’re not “significantly oversold” yet. Furthermore, he said it is difficult to imagine a market correction in August because historically, a bottom in October is more likely. “We still can’t call it a flush enough to really commit to it,” Verone said. “Had it been October, it might have been an easier decision, but frankly, it’s hard for us to imagine that many markets would have been flush in early August. Falling into correction lows.”
ABOUT US
Our news website delivers comprehensive coverage on US news, economy, politics, and world events, ensuring you stay informed on the latest developments. We provide timely and accurate news to keep you updated on the most important stories. Stay connected with us for in-depth analysis and breaking news from around the globe.
Contact us: contact@realtimeheadlines.com
© Real Times Headlines - 2024 | All Rights Reserved