Thursday 29 October 2009

This Pullback is Buy Opportunity – Not Correction: Strategists

Bold said there’s still $4 trillion on the sidelines and there’s still “a lot of opportunity” going forward.

“Every time the market goes down a little bit, people think it’s going to go down a lot. But at some point, we’re going to get to the greed factor where people are going to think they’re going to miss out on the next run of the market and instead of buying at 6,500, they’re going to buy at 11,000 or 12,000,” said Bold.

1 comment:

Guanyu said...

This Pullback is Buy Opportunity – Not Correction: Strategists

By: JeeYeon Park | CNBC News
28 October 2009

Stocks fell last week and have continued to slide this week, prompting speculation that this may be the beginning of a correction. What does this mean for the overall markets going forward?

Adam Bold, founder and CEO of the Mutual Fund Store and Joe Kinahan, chief derivatives strategist at Thinkorswim, shared their insights.

“This is really a healthy thing to have happen in the market,” Bold told CNBC.

“It introduces some fear back into the markets, which is not a bad thing, and it gives people who have been waiting for an opportunity to get in that opportunity.”

Bold said there’s still $4 trillion on the sidelines and there’s still “a lot of opportunity” going forward.

“Every time the market goes down a little bit, people think it’s going to go down a lot. But at some point, we’re going to get to the greed factor where people are going to think they’re going to miss out on the next run of the market and instead of buying at 6,500, they’re going to buy at 11,000 or 12,000,” said Bold.

In the meantime, Kinahan said the markets aren’t heading for a correction—and also said it’s “healthy” that we’re seeing some selloff.

“We had a nice rally, and people are taking some profits,” he said.

“What you’re seeing is more of a rollover. The Dow has been significantly stronger than the Nasdaq over the last few sessions, so people may be moving their money from some of the tech sectors into the Dow.”