Stocks Face the 'Kiss of Death': Strategist
Stocks struggled to hold gains on Tuesday even after a number of positive economic reports. So how should investors position themselves? Bernard McSherry, senior vice president of strategic initiatives, Cuttone & Co. shared his market strategies.
“I’m still hesitant on the market as a whole,” McSherry told CNBC. “I’m still worried about flow funds in here. I think most of the scared money is in—we heard from some talk this morning that retail investors are stepping in and that’s the kiss of death for a lot of us in the market down here.”
McSherry explained that retail investors tend to buy stocks at the top and usually underperform.
“It’s going to be interesting to see what happens with the financial regulations that are proposed,” he said. “There are a lot of changes coming down the pipe that might affect the way markets operate, the way banks operate and lend, and I think we have to monitor that closely. There’s a possibility that we could overdo things and cramp action of the markets and lending and I’m hoping that we don’t overstep that.”
No immediate information was available for McSherry or his firm.
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