The US Sell-Off, What Do the Analysts Think?


On Monday, the Asian markets took quite the fall after the Dow Jones Industrial jumped almost 1200 points. According to some of the analysts of the market these moves should not be worried about and are nothing but a pullback.

So far, no obvious single reason could be determined as the main cause of the decline of Dow on Monday. The popular U.S. index went below the 25,000 mark. These falls were triggered over apprehension surrounding the rising interest rates. These declines did not stop there but spread into the Asian trading session and the major indexes reported of major losses that day.

Some of the investors were hopeful still that the recent declines will be like short-lived correction.

An investment strategist at Credit Suisse, Suresh Tantia said that the sell-off overnight was driven by program selling and algorithms. She highlighted how the economic data has remained standing strongly during this. He said that we can expect to see more selling over the next few days but one cannot call it a great buying opportunity as fundamentally, nothing has changed.

Jeffrey Kleintop, the chief global investment strategist at Charles Schwab said on Tuesday that this was apparently a stock market phenomenon that is no more a part of the economy and the macro-environment.

He said that the information we have right now about the current situation is that there has been disconnect in the volatility market. An imbalance of orders took place that resulted in this downfall of markets. He said that this does not mean that it is over, but these things have a knack of correcting themselves quickly.  He said the recent declines were going to be pullback that’s all.

Some warned of the volatility ahead. CIO of Triogem Asset Management, Tim Seymor said that I am definite that a large number of people are out there thinking I can use this opportunity and buy and everything is going to be fine. I really hope for their sake that it works out for them. I am expecting choppiness in the market ahead.