Tags: Schoenberger | market | stocks | volatility

Money Manager Schoenberger: 'Wall Street in Disarray'

By    |   Friday, 10 October 2014 12:37 PM

Stock market volatility, as measured by the CBOE Volatility Index (VIX), has soared 35 percent this week, as stocks have endured a rollercoaster ride.

Investors have seen three straight days (Tuesday through Thursday) of at least 1.5 percent moves in the market for only the 54th time since 1928, according to Bespoke Investment Group.

So what does that all add up to?

"Wall Street is in disarray this week, as the violent gyrations are causing havoc for fund managers and active investors hoping for a smooth fourth quarter," Todd Schoenberger, president of J. Streicher Asset Management, told CNBC.

"The fear factor is beginning to hit panic levels, as worries about a worldwide economic slowdown become real, despite round after round of stimulus and central bank intervention."

Bill Gross, the star bond investor who recently left Pimco for Janus Capital Group, says investors better get ready for lower returns than in the past few years — with bonds returning at best 4 percent and stocks at best 6 percent for the next seven years.

"If yields can't go much lower, then bond market capital gains are limited. The same logic applies in other asset categories," he wrote in a commentary.

Not everyone sees Thursday's plunge in stock prices as a major cause for concern. "A correction is just healthy," Carsten Hilck, a senior fund manager at Union Investment Privatfonds in Frankfurt, told Bloomberg. "You can't go up all the time. It's nothing to worry about too much."

The S&P 500 index remains 188 percent above its March 2009 low.

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Stock market volatility, as measured by the CBOE Volatility Index (VIX), has soared 35 percent this week, as stocks have endured a rollercoaster ride.
Schoenberger, market, stocks, volatility
260
2014-37-10
Friday, 10 October 2014 12:37 PM
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