Investors shouldn’t ‘bottom fish’ purely based on how low a stock has tanked, says one veteran strategist.
“I wouldn’t just try to bottom fish a disaster, simply because a stock has gone down a lot,” Liz Ann Sonders, Charles Schwab chief investment strategist told Yahoo Finance Live.
“In an environment like this where growth has slowed, we’ve got negative earnings revisions ratio, you’ve got the valuation issues that come into much more clarity when you’re in a tightening cycle,” she added.
The divergence in stocks is notable over the last three months, since the Federal Reserve started tapering its balance sheet.
Stocks, including Netflix (NFLX), Meta (FB), PayPal (PYPL), Affirm (AFRM), Draftkings (DKNG) and Roku (ROKU), are just some of the stocks which tanked by double digit percentages—in some cases their worst declines ever—in the aftermath of their latest quarterly results and…
