The stock markets in the US clearly show elevated volatility as the swings have now extended into the third week, said Jonathan Corpina of Meridian Equity Partners. One of the most important things that investors need to learn is to live with is the heightened uncertainty and volatility because this is the “new normal.”
Economic growth has not been very strong in the US and internationally, earnings growth has been tepid as well so far this year. Moreover, the jury is still out about a possible rate hike by the US Fed next week and investors do need to get used to the uncertainty. That said, there’s still room for a pullback as investors are reluctant to put money back amid the continuing volatility in the market, he said.
Amid the raging speculation about a possible rate hike, Wilmington Trust has maintained its exposure in stocks, said Luke Tilney. The current heightened volatility has also been caused by uncertainty about growth in China’s economy to the degree that those uncertainties have been factored in over the past few weeks in stock pricings but Wilmington believes risky assets are the place to be, he added.
