Wall Street is preparing for a new selling spree
Yahoo Finance reports, that Wall Street is preparing for another selling spree on the market. The new wave will not be disastrous, yet it will most likely offset the recent gains.
Paul Schatz, the Chief Investment Officer of Heritage Capital, has stated, that the market will not repeat the “dot com bubble” scenario. Nevertheless, he advises the investors to wait until the wave ends at around the middle of April.
There are multiple possible reasons for the upcoming sales. One of them is the economic data - both existing and the upcoming. The reports are likely to be pessimistic and might undermine the confidence of the investors. The most frightening perspective is the possibility of the unemployment expanding to a new record levels.
The other possible reason behind the future selling wave is the acceptance of the new unpredictable reality by the companies and institutions. Forecasts are being slashed and left pending, the plans for 2020 are being abandoned.
One way or another, experts surveyed by Yahoo believe that the recent market gains will be lost. The key indexes will most likely return to the levels of the end of the March.