Local adviser says sell-off next on Wall Street
With the Dow having topped the 14,000 mark on Friday, it’s likely that sellers will dominate the stock market come Monday and that, Grand Junction financial adviser Mike Berry said, is not a bad thing.
A profit-taking sell-off is to be expected after the market clears a psychological obstacle, such as 14,000, said Berry of Legacy Wealth Management. It was the first time the Dow exceeded 14,000 since October 2007.
“I fully expect to see it happening and we could use a consolidation or a correction,” he said.
The milestone came Friday on the heels of some economic reports that were at least not discouraging, including a jobs report that was “not all that bad,” Berry said.
Investors also are coming to grips with the notion that they aren’t going to find comparable returns elsewhere, Berry said.
The current Federal Reserve policy of holding down interest rates has forced investors to seek places where they can earn some returns, Berry said.
“People in general who have been sitting on the sidelines for the last four years getting zero for their money finally figured out that they had better get on the train before it leaves the station,” Berry said.
There is a cautionary note, however, Berry said, noting that the same kind of market volatility that pushed the Dow to 14,000 can do the opposite, as well.
“Volatility means movement in either direction,” Berry said.