Traders: What They Think Happened To The Markets
What do traders make of the market "week that was?" Three of them appeared on "Power Lunch" to do some water cooler talking. And their outlook is not necessarily a "rosy" one. Stuart Schweitzer is global markets strategist as JP Morgan Asset & Wealth Management. Bob Nunn is a managing director at Cohen Specialists and John O'Donoghue is head of trading at Cowen & Co.
Schweitzer says this week's markets decline was "all about risk." He says risk positions in portfolios has been very high and that there was too much complacency about it. Nunn says what happened really shows the impact of the global economy. He also commented on the computer glitch on Tuesday that brought the Dow down some 200 points. He says these kind of things are still to come--until all the kinks of electronic trading are worked out.
O'Donoghue says a market correction will probably last anywhere from a couple of weeks to a few months--before there's stability. He also commented on electronic trading--saying that because there is less off the human element these days--there's more chances for glitches. But he said that it was just that--a glitch and not something that he expects to happen very often.
Schweitzer says there's going to be more downside--as economic reports out next week (unemployment, labor and productivity) will more than likely be somewhat negative rather than positive. However, he did say the silver lining in all this-- is low interest rates. He called that "the safety net."