While the S&P 500 Index hovered near bear market territory on Tuesday before reversing course, I was at the New York Stock Exchange to discuss volatility and gold with Bill Griffeth on CNBC.
Sue Herera, Tobias Levkovich (from Citi), and I talked with Bill about expectations, fundamentals and technicals in the market, addressing what was on everybodyâs mind: Will stocks go lower? I donât believe they will, based on historical data and understanding the difference between whatâs normal and whatâs extreme volatility. Emerging markets and oil have been severely discounted by investors and are considered oversold. I would expect a reversion to the mean to take place, meaning the odds are in favor of a rally.
The markets have been trading on fear lately because of government policies, not on fundamentals. For example, itâs very positive that during the last quarter, 700 companies held in the S&P 1500 Composite Index had more than 10 percent revenue growth.
At the close of the market, I came back on CNBC to touch on the factors that are poised to drive the increase of the gold price over the next several years, including negative real interest rates and central banksâ interest in holding the yellow metal.
