Investors should muster all the courage and stamina they can amid the market volatility and jump in and buy shares, Tom Hutchinson, senior editor of the Newsmax newsletter "The High Income Factor," told
Newsmax TV.
“If you're a real investor and you're looking in it for the long term, do yourself a favor and realize that these dips represent a great time to buy,” he told “Newsmax Now.”
Stocks plunged again Tuesday, continuing a rocky ride for Wall Street, after an economic report out of China rekindled fears that the world's second-largest economy is slowing more than previously anticipated.
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The sell-off adds to what has been a difficult few weeks for U.S. and international markets. U.S. stocks just closed out their worst month in more than three years. Tuesday's drop also dashed hopes that, after some relatively calm trading Friday and Monday, the stock market's wild swings were coming to an end.
In the end, the Dow lost 469.68 points, or 2.8 percent, to 16,058.35. The S&P 500 fell 58.33 points, or 3 percent, to 1,913.85 and the Nasdaq composite fell 140.40 points, 2.9 percent, to 4,636.10.
But with all of this uncertainty and volatility, has the Federal Reserve let the markets get out of hand just as the central bank was expected to finally start raising rates?
“It has lost a bit of control of the market indeed because now the shots are being called internationally, namely from China,” he said.
“The Fed had buoyed the market for years and the market soared higher than the economy should have allowed. But then as the economy started to catch up a little — the Fed pulled back. It went through its QE3 and got on schedule to raise rates,” he said.
It’s also easy to confuse the “health” of the nation’s stock market with the health of the economy.
“Nobody knows what the stock market reflects anymore since the Fed got involved to the extent they have. The U.S. economy has pretty good momentum — on a relative basis it looks great — but most of those statistics are looking in the rear view mirror.”
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