Many good points in the below discussion…refreshingly frank comments from Mr. Ingram. BNN will have to stop having him on, their financial sponsors won’t like the message.
Michael Ingram, Market Strategist at BGC Partners joins BNN’s The Street for a look at what’s driving the market rout and why running face first into the downturn with a ‘buy on the dip’ mentality could leave you high and dry. Here is a direct video link.
“The fact that people are talking about ‘decoupling’ in the last few days, developed versus emerging [markets], that’s a sign of desperation, we’ve been here before, last time we saw that was 2007-2008, come one, we’ve been here before.”
Keep in mind that most fund cos and asset managers (like the other guest on set in this clip) are mandated by their constating documents to keep fully allocating to equities and carry minimal cash balances no matter how overvalued and dangerous markets may be. Hence they all expound similar marketing drivel about there being diversity benefit in holding different companies and ‘decoupled’ markets. But that doesn’t make their theories true or helpful for capital protection in bear markets. Recall that if most managers lose the same or less as the S&P 500 or TSX in a downturn, they cite that as evidence of being skilled money managers. Few clients who lose money will agree.