The stock market has been hit by a double whammy of hateful news, explains Charles Schwab, chief investment officer Liz Ann Saunders.
“I think at this point in the economic cycle and the market cycle, the transition from very loose to tighter policy has been a factor in volatility. [we are seeing]. I added that to an environment where we were starting to see a huge amount of speculative foam and then we added Omicron to that. [concerns], you get the double whammy catalysts that can sometimes cause an eruption of the volatility,” Saunders said on Yahoo Finance Live.
Increased volatility reflects the two-way blow to Omicron’s changing fears and Surprisingly tough testimony before lawmakers from Federal Reserve Chair Jerome Powell this week.
In fact, markets continue to endure a turbulent period as a result, Which started with a huge loss of more than 1,000 points for the Dow Jones Industrial Average The day after Thanksgiving.
Dow fell 652 points In Tuesday’s trading, while the Nasdaq Composite and the S&P 500 were also deeply in the red. All components of the Dao Thirty It was red for the session, except for An apple and Merck.
The tepid move continued into Wednesday, with the Dow Jones reversing its 520-point gain on the day to end a 461-point drop. Markets were in the green by early Thursday afternoonBut dealers remain on high alert.
Saunders is in good company with her view on the Fed’s injection of uncertainty into the markets.
“I think the risk to the overall market is how the market will respond to the Federal Reserve somewhat of a tightening of financial conditions,” said Pershing Square Capital founder Bill Ackman. Yahoo Finance. “I think this is the risk to the market.”
As for the moves one should make against this high-risk backdrop in the market, there is still a strong bullish camp on Wall Street that believes buying dips is wise.
“I think if there are certain names that you would like to add to your wallet, you can use them [weakness] For your own good,” Crossmark Global Investments Victoria Fernandez said on Yahoo Finance Live. Fernandes believes the market’s reaction to this week’s news has been “exaggerated”.
Fernandez said she’s buying Apple shares because of weakness, for example.