NEW YORK (TheStreet) -- All three major U.S. indices are in the red, but are currently off the lows. TheStreet's Debra Borchardt spoke to Keith Bliss, senior vice president of Cuttone & Company, about the market's direction.
Investors finally appear to be focusing on market fundamentals after getting used to the Federal Reserve's easy money policy for so long, Bliss said. It's good that investors will put more weight into global macro events, the U.S. economy and corporate earnings.
He added that the Fed will likely announce another round of tapering to the tune of $10 billion during today's 2:00 p.m. EST announcement. This is what the market expects and investors should cheer the move as fundamentals become more and more important.
Bliss also suggested that many investors are worried about emerging markets doing poorly and possibly even collapsing, depending on the country. This worry has been evident in U.S. stocks as well, which have suffered as a result.
For many technology companies, emerging markets are the next great frontier for them to conquer. Should emerging market economies slow in a significant manner, it will weigh on sales through 2014 for many of these stocks.However, Bliss concluded that it's actually a good thing for the market to focus on fundamentals since it will create a more natural stock market. He concluded that as volatility rises, it will create a bumpy ride for investors going forward. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV