Friday's Sell-Off: Assessing The Damage And Opportunities | Seeking Alpha
Eric Parnell has written another outstanding article on the state of the stock market. The Dow's decline of -278 on Friday was very scary, and a drop of this size has not happened in a long time. Long term government bonds and gold fell even further than stocks. So, as Eric said, there is no safe place to hide except in cash or BIL, short term government bonds.
Of course, volatility was up but it is very difficult to catch gains on a volatility index like VXX or TVIX. In spite of the bad news, Eric said the stock market is still in an unbroken uptrend. However, we need to steer clear of some stocks that he mentioned because the downside is more on utilities and REITs like XLU and VNQ. The author said the long term uptrend is still intact for these sectors, though. Their gains were just overextended.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment