UPDATED 10:37 AM PT — Friday, Dec. 28, 2018
Financial experts are dismissing recent claims of a possible recession by saying the current market volatility is not a long-term concern.
During an interview Friday, Leuthold Chief Investment strategist Jim Paulsen said ups and downs in the markets are going to happen for a while, but it doesn’t mean there should be a negative outlook on Wall Street. He believes markets have hit close to their low and it’s a great time to buy.
The former head of the Nasdaq — Bob Greifeld — said the lack of volatility the last few years has been abnormal. He said people should focus on the percentage markets move rather than numbers, because Wall Street has never been so high and the numbers may be inflated.
“A three-percent move will happen, right, will it happen five times a year, 10 times a year, 20 times a year — I don’t know, but it’s going to be in that order of magnitude, so investors really always have to look behind the noise of the moment and look at what is the fundamentals of the company,” he explained.
Greifeld went on to say Wall Street is having a disconnect with economic data, which he said is positive and doesn’t predict there will be a recession.