Steve Sosnick, Interactive Brokers’ chief strategist, discusses profit taking, IPOs, and how the market is quite speculative these days.
Aiming for high returns is the whole point of investing of course.
But it’s crucial to manage your risk in a market like this.
Photo Credit: Pictures of Money via Flickr Creative Commons
The great American writer was famously “more concerned with the return of my money than the return on my money.”
Valuations, consumer spending and digitalization are powering growth
I believe September will prove to be much more representative of a “normal market” than June, July, or August, simply because the market will have all participants engaged. Summer is always a low volume situation, and as such, prices of stocks can get distorted with wide spreads on low volume. One caveat, I thought the same thing held true two years ago, and when the bottom fell out of Lehman, Fannie and Freddie, etc, I was surprised at the magnitude of the selling for the next 6 months. I do not see any events like that on the horizon, and I do not believe we will have a double dip recession. I also believe the bond market is in a huge bubble, and investors will feel the pain of it popping, especially with 2yr, 10 yr, and 30 yr Treasuries trading at all time low yields.
Healthcare Portfolio manager and ophthalmologist Robert Freedland offers his outlook.
