Has the Stock Market Hit a Bottom?
Markets have been performing well in the past few days in response to numerous economic data—but can we really trust that this is the bottom? Two strategists, Harry Clark of Clark Capital Management Group and Joe Clark of Financial Enhancement Group discussed their views on CNBC.
“We’re in a cyclical bull market right now,” said Harry Clark. “There had been 10 prior waterfall declines—last year’s 11th decline was followed by a cyclical bull, which averaged a 64 percent gain over 7 to 8 months. We’re in that type of market now.”
He suggested that the U.S. economy would see signs of recovery in the late summer months — and that now is the right time for investors to buy stocks.
Joe Clark disagreed.
“Right now, there are so many moving parts that nobody can predict exactly what’s going to happen,” he said. “It’s more important now to be able to react to the markets than predict what is going to happen.”
He suggested that investors continue to sit on cash until the market shows more signs of a recovery.
Disclosure information for Joe Clark and Harry Clark was not immediately available.
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