Market Bottom Closer Than It Appears

The current market maelstrom could be nearing an end with investor capitulation close-at-hand, said Ronald Sanchez, chief investment officer of Fiduciary Trust Company International. “It’s always hard to say where the bottom is, but I do think we are closer to the bottom,” said Sanchez. “We will probably start to build a base here and we are looking for signs of stabilization that the market will look favorably on.” And while the yield on the 10 year Treasury bond has dropped to almost 1.6%, Sanchez does not see the U.S. heading into negative interest rate territory like Europe and Japan are currently experiencing. He said the most recent employment report showed improvement in wages and the consumer appears to be in good shape to push up prices. Gold has been a safe haven trade thus far in 2016 and is now fetching almost $1,250 an ounce. Despite its impressive run, Sanchez is not a fan of the yellow metal. “It’s a safe harbor trade, but as we look out further I think that will subside and investors will start to take advantage of a real repricing that we have experienced in the marketplace so far in 2016,” said Sanchez.