High volatility keeps stocks on edge—5 strategists on what's next for the market

  • 📰 CNBC
  • ⏱ Reading Time:
  • 70 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 31%
  • Publisher: 72%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

With concerns a global economic slowdown is approaching and no trade deal in sight, experts worry there will be more pain in the market.

Here's what five experts are watching now:

"You never really know what actually triggers these things. But, we as investors have to expect them. The European Central Bank has had a very low to negative rate policy for a while. And the fact is, that these banks had been able to supplement earnings through other ways, either by cost cuts or marketing investment products, or other types of fee-based income. As result, despite the low interest rates, we have seen acceptable levels of earnings.

"I think the reason that the attention that we're paying is more to the bond market than the equity market at this point, is because the central bankers have gotten out in front, a bit. We haven't seen major economies falling into recession yet. The U.S. looks like it's still pretty far from recession. We think it's only about a 1 in 3 chance over the next year, and you need to see the trade-war escalate in order for that to become a big risk.

"There's obviously no place to hide within equities on a day like this. And this is a continuation of what we've seen for quite some time of these binary markets where you basically have either monetary policy or trade policy ... steering the markets right and left. To some degree, you have stocks moving so much together that it makes it harder and harder to find companies that are trading on their own fundamentals.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in ZA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

I understand this volatility is just natural when certain things happen, people in power push the right buttons to start the up and down cycles to benefit by selling and buying short...rich get richer

South Africa South Africa Latest News, South Africa South Africa Headlines