Stocktake: Will investors keep buying the dips?

Tech-heavy Nasdaq suffered biggest one-day selloff since October last week

The S&P 500 is refusing to go down and has now been within 5 per cent of its all-time high for almost four months.

The S&P 500 is refusing to go down and has now been within 5 per cent of its all-time high for almost four months.

 

Rising yields have started to hit equity markets. Last Tuesday, the S&P 500 fell almost 2 per cent before closing higher following a late surge, but there was no turnaround on Thursday, when the tech-heavy Nasdaq suffered its biggest one-day selloff since October.

The S&P 500 has been within 5 per cent of its all-time high for almost four months, notes Ritholtz Wealth Management’s Michael Batnick, with investors buying every minor dip over that period.

Will that continue? As long as yields go up for the right reason, equities will ultimately benefit and dips should be bought into, says Barclays, “but regime shift brings volatility and a new leadership, which most investors are not positioned for”.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
GO BACK
Error Image
The account details entered are not currently associated with an Irish Times subscription. Please subscribe to sign in to comment.
Comment Sign In

Forgot password?
The Irish Times Logo
Thank you
You should receive instructions for resetting your password. When you have reset your password, you can Sign In.
The Irish Times Logo
Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.
Screen Name Selection

Hello

Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
Forgot Password
Please enter your email address so we can send you a link to reset your password.

Sign In

Your Comments
We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Standards. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or by filling out this form. New comments are only accepted for 3 days from the date of publication.