In This Article:
Markets (^GSPC, ^IXIC, ^DJI) are clawing back from some losses, but all three major indexes remain down for the year.
Nora Yousif, RBC Wealth Management vice president and financial adviser, joins Catalysts to explain why she sees the current market volatility as a buying opportunity.
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
Well, US markets have recovered some ground since the steep selloff we saw in the days following President Trump's tariff announcement. All three major averages are still down year to date. Our next guest says investors should look at the volatility as a potential buying opportunity. I want to bring in Nora Youssef, RBC Wealth Management VP and financial advisor for this week's FA corner brought to you by Capital Group. Nora, great to have you on here. Talk to me about the type of investor that should be essentially dip buying versus the type of investor that perhaps Bank of America's Michael Hartnett is speaking to when he says sell any rebound in this market.
Yes, well, I would not say to sell now while the market is down and frankly, opportu the when the market is volatile, it is right for opportunity and it's a matter of recognizing that when faced with uncertainty earnings forecast headlines, markets tend to reprice to the worst case scenarios which usually don't happen. And where we're starting with these tariffs is likely not going to be how we ends. In fact, let's face it. The Republicans will get rolled in the midterms if this was 2026. So view this as a potential buying opportunity. Yes, it may feel unprecedented. Yes, it may feel like a new normal, but I urge you to seek out those opportunities because the market's the only place when the prices go down, that people buy less. And it's times like this that serious money can be made.
So where is that potential opportunity? What sectors?
Well, I I can't offer specific names, but just about every index sector has pulled back with the exception of REITs, consumer staples, utilities, which are defensive and not impacted by tariffs and international. As for stocks, there are some really attractive valuations out there. I haven't seen in a long, long time with quality companies that have strong fundamentals and bode well with the long-term trends of AI. So don't overthink it, try to catch the bottom or time the market. It just get in and if you missed the 10 best days, which tend to happen within the two uh two weeks of the worst 10 days, the S&P performance gets cut in half. So don't overthink it.
How much hedging should investors be doing then amid some of that volatility? I hear you saying like, don't try to catch a falling knife, but then also get in at these levels when the market is on sale. Should investors be thinking, okay, well, if I do get in right now, maybe I should be getting in on some of those safer haven assets like gold, for example.
Yes, well, you know, you want to seek essentially you want to be a contrarian. Uh the key to being a successful investor over time is being a contrarian. So really seeking out what is out of favor as distasteful as that may seem at the time. And of course, this is assuming you have plenty of cash reserves in your emergency fund uh and you're in a position with plenty of dry powder to put to work into this market.