As the VIX surges 34%, Wall Street waves the caution flag.? Investors are being warned of a temporary sell-off and are being advised to wait it out.
S&P 500 took a 2.7 dip last week – the biggest since 2012.? Some professional investors are foreseeing more losses to come.
Phil Orlando, Chief Equity Market Strategist at Federated Investors Inc. said in a phone interview with Bloomberg: “Our call had been to experience a five to 10 percent correction over the summer months and this is playing out.? Investors know these summer months that the market is primed for a hiccup.”
However, with the steady gains and low volatility that we have seen for most of 2014, equity investors are remaining confident.? Anthony Valeri, market strategist with LPL Financial Corp. adds: People feel better about investing in stocks over other asset classes.? Most investors are still bullish.”
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