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Beware of 'Double-Dip Scare' in Near-Term: Strategist

The volatility index (VIX) spiked over 30 percent in the past month, and pros including Russell Napier, market strategist at CLSA, and Kim Caughey, VP and assistant portfolio manager at Fort Pitt Capital Group, expect the swings to continue.

“We think this year is going to be as volatile as last year,” Caughey told CNBC.

Caughey suggested that traders buy on the dips and trim from overweight stocks, in order to “give yourself cash to buy those new stocks later, when the market goes on that downward slide of the rollercoaster.”

In particular, Caughey likes the telecom sector.

In the meantime, Napier warned investors of a "double-dip scare" in the near-term.

“As QE2 [quantitative easing] kicks forward and we run out of time, the market will come off,” he cautioned. “So the next month or 6 weeks, the markets should start coming down.”

Second Opinions:

  • Oil, Currency Volatility to Go On: Strategists

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Scorecard—What They Said:

  • Caughey's Previous Appearance on CNBC (Mar. 2, 2011)
  • Napier's Previous Appearance on CNBC (Sept. 13, 2010)

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More Market Intelligence:

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CNBC Data Pages:

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CNBC Slideshows:

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Earnings Coming Up This Week:

Adobe

Best Buy

General Mills

Oracle

Research In Motion

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Disclosures:

No immediate information was available for Caughey or Napier.

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Disclaimer

Symbol
Price
 
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ADBE
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BBBY
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GILD
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ORCL
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BB
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VIX
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