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Strategists Advise No Risk Taking Now

According to Steve Grasso, director of institutional sales at Stuart Frankel, and Peter Yastrow, strategist and principal of Yastrow & Origer, now is not the time to take risks with investing.

“We have to stay on the defensive side of trade. There are not a lot of moneymaking opportunities for people—they want to stay on the closer side of yields,” Yastrow told CNBC.

Although stocks may be priced low, it is not the time to invest, he says.

“These are times when we listen to the market. If something’s cheap —there’s probably a reason why it’s cheap.”

Grasso agrees with Yastrow’s advice.

“We’re at a true inflection point in the marketplace. All of those safety bets have all run up tremendously. But they’re all around their fifty-day moving average,” Grasso said. “So it really gives you a spot to look at—if you want to hedge with those, or do you want to vacate the market?”

Grasso said to look at the overall S&P . First you have to see if the current level holds, if that does, then buy what’s working, he said.

For now, with the current status of the market it is an important time to understand the market instead of looking for deals, Grasso added.

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Disclosures:

Disclosure information was not available for Steve Grasso, Peter Yastrow or thier companies.

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