Financial advisors’ confidence in both the economy and the markets was largely unchanged in October as advisors awaited the expected end of quantitative easing and increased volatility in the equity markets.
REACTION FROM OUR PANELISTS
“The current turbulence may end up being a correction of plus or minus 10 percent, but long term I doubt the trend will turn negative until later in 2015, when interest rates rise and the national debt turns negative in a big way,” Stanley Corey, United Capital Financial Partners.
“In September strategists were raising year-end targets for the S&P and talking about a stock market that wanted to go higher, now they're talking about an overdue correction and overvaluation. The psychology of crowds drives volatility beyond what the efficient market hypothesis would ever suggest possible,” Rick Thoreson, Thoreson Steffes.
“A slowing global economy is of some concern, as is a strong dollar and low inflation. I would expect the Fed to delay raising rates in 2015 unless things improve dramatically,” Doug Stone, Seacrest Wealth Management.
“The Fed controls the stock market's destiny. If they actually start reducing their balance sheet, we could be in for a rough ride,” Steve Rumsey, Optimus Advisory Group.
“Anyone with an ounce of common sense, logic and sound reasoning knows we are headed for some very unpleasant surprises,” Arthur Papale, QS Inc.