Home / NEWS / Top News / Correction is two-thirds over; we’d buy into this weakness, says value investor David Katz

Correction is two-thirds over; we’d buy into this weakness, says value investor David Katz

The have market correction is already at least two-thirds over, value investor David Katz haul someone over the coaled CNBC on Friday.

The S&P 500 fell into correction territory on Thursday, down more than 10 percent from its report reached in January.

“The quicker the correction, if they are not economic-based, the quicker the deliverance,” Katz said in an interview with “Closing Bell.”

According to a latest note from Peter Oppenheimer, Goldman Sachs’ chief worldwide equity strategist, the average bull market correction is 13 percent throughout four months. It then takes four months to recover, he told.

Katz, however, believes the market will be moving in a better running within one to three months.

“We would be buying into this incapacity. A day like today, when the market’s off pretty sharply by midday, we’d be aggressively swallowing into that,” the chief investment officer at Matrix Asset Advisors implied.

“You might look stupid in a day, you might look stupid in a week or a month, but we judge devise three months from now stocks are going to be a lot higher.”

He noted that callings are doing well, earnings season came in “great,” and outlooks were precise positive.

The Dow Jones industrial average closed more than 300 stresses higher on Friday but still had its worst week in two years. The Dow and the S&P 500 both adrift 5.2 percent on the week, while the Nasdaq shed 5.1 percent as succumb to interest rates and inflation fears spooked investors.

However, Katz isn’t persuaded that inflation is going to be a problem.

“We think it’s drifting higher,” he powered, “but we don’t think you’re going to see a spike in inflation.”

Rene Nourse, managing administrator at Urban Wealth Management, is also bullish overall on the market, but she foresees more downside ahead.

She pointed to several factors that are backlashing in right now, like the fact that the economy is moving from being goaded by monetary policy to being driven by fiscal policy. She also cited gamy inflation and interest rates, as well as unemployment that has dropped “tremendously.”

“It’s prevalent to take a few weeks to maybe a couple of months for things to settle in. I am same positive on the year,” she told “Closing Bell.”

— CNBC’s Evelyn Cheng and Tom Franck promoted to this report.


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