Meanwhile, speaking with CNBC’s Squawk Box, Chris Verrone, the Head of Technical & Macro Research at Strategas, shared his view on the potential capitulation, or a potential lack thereof. Namely, numerous stocks have returned to their pre-Covid levels in terms of the prices, especially among the smaller cap stocks, so Verrone expects the S&P 500 to fall more in the near term.
More pain ahead
Moreover, the expectations the markets had around an aggressive stance from the Federal Reserve (Fed) around raising interest rates seemed justified when the Fed decided to hike rates in the most aggressive hike since 1994. In the meantime, Verrone pointed out that a distinction needs to be made between an oversold bounce and major capitulation signals, which according to him are still missing from this market sell-off. He then added: For market participants, it seems no respite will be had, with analysts proclaiming almost daily that there will probably be more pain ahead. Those investors who are invested in companies with strong fundamentals and solid cash flows are probably sleeping easier at night because such stocks did not lose too much year-to-date compared to for example big tech names. Buy stocks now with Interactive Broker – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
