Stocks had a volatile start on Friday as markets remained jittery after Thursday's wild freefall. Art Hogan, global equity product director at Jefferies, shared his insights.
“This was an aberration—there was a system that broke down,” Hogan told CNBC. “We had trades that happened at prices that never should have happened.”
Disregarding the 15 minutes during Thursday afternoon when the Dow plummeted hundreds of points, Hogan said the markets had a “normal bad day.”
“We’re down 3.5 percent, which brings us down about 8.25 percent in this current selloff,” he said. “We’ve had four selloffs since the March bottom and they’ve averaged between 6 to 7 percent—the worst was 9 percent.”
The market is seeing a correction that everyone’s been looking for, said Hogan.
“We’re not going to put new money to work until we see a pullback of 10 percent—we’re getting very close to that point,” he said.
Hogan also said he’s seeing a “very strong” buy signal in valuations and the multiples are “very attractive.”
- Watch Hogan's Previous Appearance on CNBC (May 5, 2010)
More Market Intelligence:
- Nasdaq Publishes List of Cancelled Trades
- Cramer Fingers 'Mistake' in Mid-Selloff
CNBC Data Pages:
Friday's Top Dow Gainers (as of this writing):
Bank of America
No immediate information was available for Hogan or his firm.
*GE is the parent company of CNBC.