Thursday, January 2, 2014

Equity Markets Will Be In A Volatile Trading Range

"In equities though, investors seem to be obsessed with “what the stock market will do” because they focus almost entirely on stock market indices. There is a possibility that equity markets will move, in 2010 and thereafter, into a volatile trading range as was the case in the 1970s. The point I wish to make is that good stock selection is at least as important as, or even more important than, “guessing” where the markets will go. Even in recessions and down-markets, some companies can continue to thrive.

I think it is important to understand that in emerging economies, where markets are far from being saturated, companies that execute well can continue to grow even in a poor economic climate. So, investors should focus on identifying well-run and promising companies, and fund managers who are conservative, disciplined, and focused.

Still, I continue to notice a large number of stocks all over the world have recently broken out on the upside with heavy volume. I concede that some stocks have also broken down, but for now there seems to be a preponderance of upside breakout moves, which suggests that a bear market is not imminent. Therefore, I would still use market corrections as an opportunity to add to positions in fundamentally sound companies."


Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.


Related Posts Plugin for WordPress, Blogger...