[video] Quick Take: Stock Selling Trimmed, More to Come
NEW YORK (TheStreet) -- The U.S. equity markets had a very ugly open on Friday and have managed to erase most of those losses so far. Ben Willis of Albert Fried & Company told TheStreet's Debra Borchardt there is more downside ahead.
In 2013, the market was notorious for having pullbacks of 4% to 4.5%. Although the current pullback is of similar magnitude right now, Willis said a deeper pullback would be healthy. He argued that a 10% correction is good for a bull market, and will give investors a really great buying opportunity.
A 10% pullback would put the S&P 500 back to around 1,675 or so, and should draw quite a bit of support from investors and market participants.
There was a large outflow in U.S. equity mutual funds, which is the opposite of what most fund managers expected for the month, Willis said. The bond market has been holding up since it is being viewed as a "safe haven" at the moment, he added.But all of these perceptions will likely "reset" so long as stocks become more attractive after a bigger pullback. It will be beneficial in the long run, Willis reminded investors. -- 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 Plus 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