Fund Manager: Buy on Panic Dips, Sell on Market Spikes
Thomas Winmill, president and portfolio manager of Midas Funds, told CNBC’s “Squawk on the Street” that investors should consider buying stocks on panic dips and selling on market spikes.
“I think we’re going to see more panics,” he said Monday. “As the market goes up, you tend to see sell-offs the way we had in late February. If you had bought at the bottom, March 5, you would have seen a nice 5% increase.”
He said there’s no way to know for sure when the market has bottomed out, but keep an eye an quality stocks in a downbeat market.
“When you see a quality name sell off because Mr. Market is having a bad day, jump in,” he said. “That’s the way I’d play this.”
He expects the market will continue to be volatile, but this creates an opportunity for the shrewd investor.
“People are seeing every economic data report out there and they’re getting nervous,” Winmill said. “There’s a lack of acceptance of the good things that are happening in the market. So, go with quality, and play the upside.”