U.S. & Chinese Central Bankers Seek to Calm Markets
After enduring four of the worst trading days we've seen in over a year, fund manager Ted Parrish of Henssler Financial says it's time to take advantage of a market that's five percent cheaper than it was a week ago, and almost seven percent lower than it was a month ago.
"I would buy right now," the Henssler Financial principal says in the attached video. "We're not momentum traders but today is as good as any if you have some money to put to work."
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Helping his cause, of course are comments from no less than three central bankers over the past 24 hours that have calmed markets and dispelled some myths. This as the Federal Reserve Bank presidents from Dallas and Minnesota both moved to downplay the perception that quantitative easing was in imminent danger of ending. At the same time, the People's Bank of China said it will provide liquidity and take the necessary measures to support local banks that are tight on cash or struggling.
For Parrish, and investors like him all over the world, those comments were tantamount to a green light.
"We would suggest buying Consumer Discretionary (XLY) stocks, Industrials (XLI), and even Technology (XLK) stocks. Those three sectors should do well if the economy continues to improve," he says. Banks (^BKX) are another sector the he now likes too given their exposure to the economy.
"We've come to grips with the fact that you can't have a real serious expansion in the stock market or the economy without banks participating," he says, singling out regional lender BB&T (BBT) as one of his favorites.
And finally, Parrish says that people should just accept the inevitable and quit trying to guess Ben Bernanke's next move.
Related: Don't Look at Bernanke, China Is Driving This Meltdown
"Most people are too focused on the Fed," he says. "The Fed's going to do what the Fed's going to do."
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