Russell Rhoads, a professor of financial management at Indiana University and the co-host of Academic Market Insights, says that the market’s Wednesday rally was about getting political uncertainty behind us, but Thursday’s selloff was focused on flagging fundamentals for artificial-intelligence companies. Rhoads, who acknowledges that being bearish has cost him in terms of missed upside, says that if the market falls through its 200-day moving average, it is likely to be “the every-five-year correction that seems to be a bit overdue right now.” He sets that the market could easily shed about 1,000 points on the Standard & Poor’s 500, but notes that kind of pain would mostly be a set-up for the next leg up, and would likely move him to where he becomes bullish again.
In the Market Call, Will McGough, chief investment officer at Prime Capital Financial makes his debut and talks about looking through the labels,” — especially when stocks are labeled as being A.I. stocks — to find the right mix of assets to hold now.
Want to listen to the full podcast? Check it out here.
