NJ Expert: Recent Stock Losses are Healthy [AUDIO]
Stock market watchers are concerned about the big losses markets incurred in trading last week, but one expert believes that’s just a blip on the radar screen.
Ken Kamen, managing director of The Mercadien Group in Mercer County, sees an economy that remains fundamentally stable, despite the stock reverses. He said the drops, led by technology companies and small businesses, are reminders that risk is real and momentum does not continue forever.
“You have good quarters, you have bad quarters,” Kamen said, “but we’re still in, I believe, the long-term bull cycle, and I think that you really need to look at what’s going on now as a healthy correction in a long-term bull cycle.”
Although risk is a definite concern, more conservative stocks have still been holding up well through this latest run. Some of the big losers in the recent tech stock selloff were Netflix, which lost 29 percent of its value, and Facebook, which dropped 20 percent.
Some of last week’s losses were concentrated in stock areas considered speculative. On Monday, markets got back some of what was lost. All major indexes gained ground as the new week began.