As of Thursday’s close, the SPX is less than 2% below its all-time high. No question it was an ugly day but a look beneath the hood might suggest it is not as bad as it seems- yet.
Adam Sarhan, chief executive of New York-Based investment firm Sarhan Capital, said investors have good reason to be on edge, but it’s still not time to start selling out of stocks and moving into safer investments.
“Markets like clarity, and right now, uncertainty reigns on several fronts,” Mr. Sarhan said. “The big question is, are tensions going to escalate after Sunday?”
The other key uncertainty, he said, is if slowing growth in China will derail the global recovery.
But from an investing standpoint, Mr. Sarhan said the U.S. market still looks good. “The risk-on rally [for stocks] is still in play for 2014,” Mr. Sarhan said. “I’ve been telling my clients, we need more damaging evidence to emerge before we determine that this bull run is over.”