Market Rebounds But Pullback Anticipated, Says Howard Capital Management CEO

ICARO Media Group
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19/08/2024 20h26

In a week of remarkable recovery, the markets (Dow Jones Industrial Average, S&P 500, and Nasdaq) experienced their best-performing week of the year. Despite this bullish trend, CEO and portfolio manager Vance Howard of Howard Capital Management predicts an imminent pullback. Howard joins Wealth! to analyze recent market movements and provide insights on how investors should brace themselves for upcoming volatility.

While remaining optimistic, Howard acknowledges that prolonged winning streaks often lead to short-term corrections. "Whenever you've had six, seven, eight, nine days in a row that are up, you're going to get a three- to four-day pullback," he explains. For traders, Howard suggests considering scaling out of positions and re-entering at lower levels. However, for long-term investors, he advises staying the course and continuing to make calculated moves.

Highlighting recent volatility due to the unwinding of the yen carry trade, Howard emphasizes that his overall outlook remains positive. As interest rates begin to ease, he points out that the real estate sector is poised for profitability, particularly in conjunction with the growth of small-cap stocks. Consequently, he recommends investors consider positions in real estate investment trusts (REITs) and high-yield dividend-paying stocks.

To make well-informed investment decisions amidst potential market turbulence, Howard advises a thorough evaluation of a company's value and fundamentals. Echoing Warren Buffett's philosophy, he emphasizes the importance of a value play approach. Howard suggests investors explore the market to identify promising stocks but also recommends the option of investing in Exchange-Traded Funds (ETFs) such as DVY or VIG for diversification and risk mitigation.

For those seeking expert insights and staying updated on the latest market action, viewers can watch the full episode of Wealth! by clicking here.

As markets show signs of recovery, Howard Capital Management CEO Vance Howard advises caution and preparation for potential market downturns. With a focus on value plays and diversification, investors can navigate volatile markets with confidence.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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