Monday Downturn Doesn't Dampen Long-Term Market Outlook
Jordan Kotick, global head of technical analysis for Barclays Capital, told CNBC’s “Closing Bell” that today’s market downturn won’t hurt long-term prospects for stocks.
“What’s interesting to us is what came before the (housing) numbers,” Kotick said Monday. “Since the stock market bottomed earlier this month, the Dow has put on about 600 points, the S&P about 75 and Nasdaq about 100. We’ve come a long way without any correction. The data this morning gave the market a reason to have a correction and it was overdue. But at the end of the day, no damage has been done.”
He said he’s bullish on global equities and suggested investors look at Brazil, Russia, India and China for values.
“This is a global equity bull market and in that environment you want to stay focused to the upside,” Kotick said. “When you have that kind of environment, it means the world is embracing risk again and that’s good for the stock market.”
C. Kim Goodwin, managing director and head of equities for asset management at Credit Suisse, agreed with Kotick -- except that she has money on the sidelines in China and is still looking for an opportunity to return to the market.
She said the U.S. isn’t about to slide into a recession, but the market will remain volatile.
She suggested investors take a look for good valuations in Japanese small cap stocks.