Watch out for market correction, experts say – CNBC.com
Wednesday’s stock decline looked like end-of-quarter kind of action, said Jack Bouroudjian, chief investment officer of Index Financial Partners. However, he thinks the real question is what will happen at the beginning of the next quarter.
“One of the things that worries me is that we’re entering a very difficult time for stocks,” he told “Closing Bell.”
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Bouroudjian said he gets cautious in the first couple of weeks in April and the first couple of weeks of October.
“This is the time to put on protection and be careful and look for that 5 or 7 percent move. It could come very quickly,” he noted.
That said, he thinks things are looking better for the second half of the year. For those who want to time the market, he would take advantage of the moves down, which are “wonderful gems of opportunity to put money to work.”
“Fundamentally, things are still looking good. We still have a low interest rate environment. We still have low energy costs and guess what? In the second half of the year I think we’re going to get some earnings surprises,” Bouroudjian said.
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He also thinks there will be a domestic and global pick up in energy demand and once that kicks in, there will be a reignition of the global growth story.
That “drives the stock market, not the U.S. economy and that’s one of the reasons why you want to be buying dips,” Bouroudjian said.
—Reuters contributed to this report.
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Watch out for market correction, experts say – CNBC.com
