With the market making such violent swings, Karabell thinks there are essentially two ways to play; fast or long-term. “You either do it fast and you catch the rotations or you look at the market in terms of fundamentals because in my estimation you’re dealing with a lot of fundamental mis-estimations,” he says
By mis-estimations Karabell means stocks in some sectors have sold-off too much. “You’ve got a huge sell-off in solar, base metals and oil. I don’t know if we’re at the bottom or if we’re 5% to 10% from the bottom but there’s no way the numbers are commensurate with their longer term fundamentals."
The Bottom Line: If you want to play the market short term Karabell thinks the bias is flat or to the downside. Or if you want to play long-term, look for stocks in the energy or metals sectors that have been unfairly punished.
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