Wealth Watch: Markets Bottom on Bad News, is This the Right Time to Buy?

Wealth Watch: Markets Bottom on Bad News, is This the Right Time to Buy?

March 03, 2022

From the desk of Vance Howard:

The market is trading in a much better range than a few weeks ago, and the HCM-BuyLine® is still negative but is slowly firming up. I was watching Cramer yesterday morning on CNBC and he made a comment about how bad things have gotten, and it reminded me of the of the adage “markets bottom on bad news”. Along with our domestic issues, international turmoil is very heavy and one must ask, was the bottom set back in late January?

One word of caution: a few good up days does not reverse a downtrend. Let the HCM-BuyLine® clearly turn positive before buying, stay disciplined, and wait until the trend turns back up. There are a lot of very attractive opportunities that have had major selloffs, such as Salesforce, AMD, Meta/Facebook, NVIDA, and the list keeps getting longer. When the market does turn back up, we will be looking at a lot of great companies that have sold off. As we have mentioned before, we have built up a very nice cash pile and will hopefully be able to take advantage of a lot of bargain buys.

You can expect a volatile market for the next few weeks to months, but it should firm up by mid-year. Until the HCM-BuyLine® turns back up, sit tight and be prepared.

Vance Howard

This communication is issued by Howard Capital Management, Inc. It is for informational purposes and is not an official confirmation of terms. It is not guaranteed as to accuracy, nor is it a complete statement of the financial products or markets referred to. Opinions expressed are subject to change without notice. Howard Capital Management, Inc. may maintain long or short positions in the financial instruments referred to and may transact in them as principal or agent. Unless stated specifically otherwise, this is not a recommendation, offer or solicitation to buy or sell and any prices or quotations contained herein are indicative only. To the extent permitted by law, Howard Capital Management, Inc. does not accept any liability arising from the use of this communication. Howard Capital Management is an SEC-registered investment advisor which only does business where it is properly registered or is otherwise exempt from registration. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability. Past performance is no guarantee of future results.HCM-011222.01

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