Feb 14, 2018

Financial adviser: "This pullback is awesome"

This pullback is awesome.

~ Green Alpha Advisors note to clients, "Advisors: What, Me Worry?", WealthManagement.com, February 6, 2018

Financial adviser on recent correction: "Turn off CNBC"

Turn off CNBC. Go to exercise class. Read a book. This market pullback was expected and very much needed to happen for the market to go higher. No need for defensive action...

~ Jonathan Torrens, President and CIO of TCM Wealth Advisors, "Advisors: What, Me Worry?", WealthManagement.com, February 6, 2018

Feb 11, 2018

Charles Schwab CEO: "investor sentiment reached highs not seen in almost two decades"

Our success with clients was bolstered by strength in the equity markets − the S&P 500 Index finished 2017 up 19%. In this environment, investor sentiment reached highs not seen in almost two decades, and clients actively engaged in the markets.

~ Walt Bettinger, CEO, Charles Schwab, Schwab 4th quarter earnings release, January 17, 2018

Zacks on correction concerns: "My advice: ignore it all"

If you look closely at some of the factors and events surrounding this market action, it's fairly clear in my view that is has all of the hallmarks of a classic stock market correction:

• Sudden, scary declines in equity prices
• No material changes to economic fundamentals, which we believe remain very strong globally
• Analysts and pundits reaching for 'causes' of the market correction, with what seems to be no clear answers
• Media abuzz with commentary over whether this could be a major downturn
• Investors shifting focus to day-to-day price fluctuations instead of focusing on long-term objectives 

What's more, if one were to review the "causes" given for the market correction, you would likely find are old, recycled fears and stories that may be too marginal to matter, in my view. So far, we've heard the correction was caused by rising inflation concerns, worries about concurrent rising interest rates and rising stock prices, fears about global central bank tightening, anxiety over the possibility of trade wars, and even the product of an obscure ETF that bets on the inverse of the VIX. The ETF, ticker XIV, fell some 85% and Credit Suisse is reportedly ending trading for it later this month.

We believe that the root cause of the correction could be any one of those events or none of them. Market corrections do not come with playbooks or detailed explanations, and they are very difficult to be timed.

My advice: ignore it all.

~ Mitch Zacks, Zacks Investment Management, February 22, 2018

Feb 10, 2018

Financial adviser: "In the long term the markets are very predictable—they go up" (2018)

The declines so far have been well within historic norms. Things could get worse, but if they do, they will recover. In the long term the markets are very predictable—they go up. Trying to time the markets is a recipe for failure.

~ Scott MacKillop, CEO of First Ascent Asset Management, "Ignore the Gurus: Part II," WealthManagement.com, February 9, 2018

Market strategist on recent 10% correction: "It isn't the beginning of the end" (2018)

It isn't the beginning of the end, but a normal correction in a long upward move.

~ Chris Gaffney, president of world markets, EverBank

Financial adviser: "some volatility is healthy for markets" (2018)

The economic backdrop remains positive and, in my view, this pullback is simply helping to get some of the froth out of the market. Some volatility is a natural part of investing, and it is healthy for markets.

~ Tim Armour, Chairman and CEO, Capital Group, "The Return of Market Volatility is Expected and Healthy," February 8, 2018