On Real Money, James 'Rev Shark' Deporre says just hang on during volatile action in the market
by BRIAN O'CONNELL
Market corrections are hard enough to bear, but things get worse when you realize the individual stocks you own – all chosen for good reason – don’t matter too much in a sliding stock market.
Real Money's James 'Rev Shark' Deporre recently noted that “strong fundamentals just don't matter when this sort of selling occurs.”
He added that “Market players just want to raise cash and stand aside until there are some signs of support.”
While this action is extremely painful if you are holding thinner stocks with no bid support, the good news is that many of the "good" stocks that are being hit hard will eventually bounce back.
“Both the good and bad are being hit right now, and when the market sorts them out at some point, the better names will attract buyers,” Deporre said.
According to Deporre, there is no easy way to time the bounces in this kind of environment.
The key to survival is to stay patient and don't be in a rush to put more capital to work until there is some strength.
“The snap-back action can occur quickly when things become very stretched, but it is much more difficult when there is some extreme rotation taking place,” he added.
“We had some similarly poor action back in February, and this feels much the same, but I don't think we will have to wait for months for a bounce this time.”
Source: The Street
https://www.thestreet.com/investing/dep ... %2BBounces
