The stock market isn’t doing well right now.
As widespread market volatility runs rampant, investors are left wondering when will be the right time to pull the proverbial plug on their assets to avoid further losses. Though stocks across the board are doing their best impression of a Six Flags amusement park ride, some experts are suggesting that now is the time to buckle up and double down.
One such expert is Michael Strobaek, global chief investment officer at Credit Suisse, who suggests that now is the time to hold strong.
“As unnerving as the sharp ups and downs may be, investors should not sell into the market lows in a panic.”Michael Strobaek
“As unnerving as the sharp ups and downs may be, investors should not sell into the market lows in a panic,” he said. “Leaving financial markets now and holding cash would mean a loss of purchasing power given high inflation. Rather, investors should stay invested.”
He elaborated on the factors that played into the current state of NASDAQ tumult. “Volatility on financial markets has been extraordinarily high this year, reflecting investor concerns over surging inflation, tightening monetary policy and the war in Ukraine, among other factors,” he explained. “Another crucial driver of volatility is the recent sharp increase in real interest rates, which creates an environment where both equities and bonds struggle.”
He concluded, “As long as recession risks remain in check, financial markets offer positive return potential.”