My question is about the state of the markets, expectations, and catalysts.
I am, like other investors here, trying once again to find my footing and assume the stance that would fit the market. I saved and accumulated some cash for the much-expected pullback, and now that it is happening, with some big names being punished harsher than they "deserve" I am looking to you guys for bearings and guidance.
We cannot time the market, yet the timing of the position plays a huge role in one's returns.
What is your take on the environment we are in? It seems to me the appetite is low on the street, and fear is high, yet VIX offers no guidance. For the aggressive, risk-accepting investor, what would be the checkpoints and catalysts that would form the bias in this marker?
I would like to initiate positions, yet, I don`t want to false start.
Thank you,
We are vieing this as a bit of a 'run of the mill' correction. Markets have had a good run over the last 24 months and investors have increasingly felt like they are looking for a reason to 'sell'. Looking at recent earnings, results looked pretty good as did outlooks and management teams were not really calling out a whole lot in terms of weakness. If there were serious cracks emerging, we probably would have heard it in commentary from the banks or payments companies. The higher level economic data hasn't been flawless, but also doesn't look too bad from what we are seeing.
In turn, we would be pretty comfortable with buying into market weakness here. No one knows if it lasts another week or 60 days (or longer), but we have a hard time seeing this weakness as somthing more than a 'standard' correction type of scenario.