The
daw It was slightly higher in late afternoon trade, recovering from a drop of about 475 pips earlier in the session. However, blue-chip stocks are still down 13% this year, and hit a new 52-week low Thursday morning before rebounding.
But
kohl (KSS) Shares rose nearly 5% Thursday in choppy trading although
Struggling series She reported a significant loss of earnings and cut her guidance.
The poor results for corporate leaders are sounding alarm bells about the recession, too. More experts are beginning to predict an economic downturn later this year or early 2023. The anxiety on Wall Street is palpable.
“What’s the catalyst? What will make investors want to buy more and give them confidence in the market? I don’t think there’s anything right now,” said JJ Kinahan, chief market strategist at Tastytrade.
The
VIX (VIX), a measure of Wall Street’s volatility, is up more than 70% this year. and the
CNN Business Fear and Greed Indexwhich looks at the VIX Index and six other measures of market sentiment, is flashing signs of intense fear.
“Investors should keep their seat belts on,” said Tom Galvin, chief investment officer at City National Rochdale. “This period of volatility is unlikely to end.”
“There is a long list of uncertainties,” Galvin added, citing the Federal Reserve’s rate policy and inflation, and concerns about the novel coronavirus outbreak in China and Russia’s invasion of Ukraine as continuing concerns.
Galvin said investors would do well to avoid speculation in technology stocks and European stocks due to concerns about excessive valuations and a possible economic recession. Instead, he recommends high-quality stocks that pay a steady dividend.
Investors may also be concerned about how market turmoil is hurting large hedge funds and other institutional investment firms.
One of the prominent hedge funds,
Melvin Capital, He announced his plans to close after betting that M shares would rise like
Jim Stop (GME) in 2021 and make timely purchases of travel stocks this year.
Traders were saving on tech stocks with risky momentum,
Bitcoin and other cryptocurrencies And other investments that could benefit from the economic recovery.
“There is definitely more fear and nervousness,” said Dan Pipiton, CEO and co-founder of TradeZero. “The cryptocurrency crash is also having an effect. There is a wait-and-see approach. People are sitting on the sidelines waiting for a clear direction on where we are going.”
Instead, investors are now flocking to stocks that are seen as a better hedge against, and in some cases, the beneficiaries of inflation and
High interest rates.for example?
Oil stocks are among the major gainers in the market this year.
chevron (CVX)up more than 40%, is the Dow’s top stock, and one of Warren Buffett’s four largest holdings.
Berkshire Hathaway (BRKB)Which
Hit the market hard this year.
Berkshire is also
big investor at
Occidental Petroleum (OXY)which doubled this year and is the best-performing S&P 500.
