With so many investors expecting the current downturn in stocks to be short-lived, returning to U.S equity markets before the volatility has reduced -- and before the prices start rising -- could be the best strategy. Robert Weissenstein, chief investment officer for Private Banking Americas at Credit Suisse, certainly thinks there are opportunities to be had -- and the time is now.
“If you’re positive on the markets, go in and buy equities -- you could buy the market,” said Weissenstein to “Squawk on the Street.” He said that investors should focus on the growth sector, and said to watch out for M&A activity boosting stocks, as companies with excess cash may take advantage of the decelerating environment to make capital investments, particularly in the tech areas.
And for the slightly less gung-ho investors, Weissenstein thinks that the spike in volatility has created opportunities in the options markets that can be taken advantage of.
“For people who are more concerned with what’s in front of them, you can sell puts, there is premium there,” added Weissenstein.