Let’s just say it’s perfectly understandable if you’re a little gun-shy about the market right now. Is this really the time to be investing, given such uncertainty on Wall Street? Stocks are ridiculously lower than they were a year ago but could well go ridiculously lower still. When in doubt, do what the professional investors are doing (and hold on for dear life).
But all of this volatility also suggests opportunity. “I almost find myself as a horse between five bales of hay,” says Jim Paulsen, chief investment strategist of Wells Capital Management, “and I just don’t know which one to bite first.” Like many analysts, Paulsen looks at crippled companies and sees bargains. Which distressed stocks are poised for a rebound, and which will fall further? Who knows. “But risk assets are going to have a pretty good time of it.”