Tags: McCain | correction | stocks | invest

Key Bank's McCain: You Don't Have to Wait for Correction to Buy Stocks

By    |   Thursday, 04 September 2014 12:06 PM

With stocks continuously hitting record highs in recent weeks, many financial advisers recommend waiting for a correction to buy.

But Bruce McCain, chief investment strategist for Key Private Bank, isn't so sure. "Many of the investors we talk to would like to invest more in equities — once the markets undergo a 20 percent correction," he writes in an article for Forbes.

"But does it make sense to wait for a significant correction before investing, or should we invest whenever we have the chance to do so?"

Editor’s Note:
5 Shocking Reasons the Dow Will Hit 60,000


The key fundamentals — economic and earnings growth — bode well for stocks, McCain explains.

"A broad range of indicators suggests the economy and earnings will continue to grow, and that should provide the basic fuel for a rally that continues to grind higher."

So how should we approach the market?

"Investors should bear in mind two admonitions for investing new money: have a defined timeline for averaging the money in and take advantage of opportunities the markets offer as they occur," McCain writes.

"If the markets refuse to correct, average the money in over the defined time frame," he adds.

"There is no best way to invest new money, but sitting on the sidelines endlessly as prices continue to rise is clearly a suboptimal strategy."

Bob Doll, chief equity strategist at Nuveen Asset Management, also is optimistic on stocks.

"Gains will be tougher to come by, but we still have a positive outlook toward equities," he writes on the firm's website.

"Absent a recession (and we simply don't see the ingredients for one being even remotely present), we expect equities will be able to make further gains."

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

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With stocks continuously hitting record highs in recent weeks, many financial advisers recommend waiting for a correction to buy.
McCain, correction, stocks, invest
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2014-06-04
Thursday, 04 September 2014 12:06 PM
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