Caixin
Nov 29, 2022 05:42 PM
OPINION

Fisher: Don’t Let Today’s Volatility Scare You Away From Tomorrow’s Rebound

An outdoor screen on Monday shows how stocks have moved over the last few months. Photo: VCG
An outdoor screen on Monday shows how stocks have moved over the last few months. Photo: VCG

When will the wild ride stop? Since late October, Chinese stocks have gone from a sharp sell-off to a dramatic rise … based on little more than speculation over Party Congress implications and rumors of lifting Covid restrictions. The swift turnaround has many wondering: Is the brutal 21-month bear market finally over? I can’t tell you that. No one can with any certainty. Anyone claiming to pinpoint market bottoms is a charlatan or fool. But a white-hot turnabout on little more than thin rumors illuminates a key reality: Sentiment is at a wretched rock-bottom — the type of climate that fosters new bull markets. That means today’s biggest risk isn’t more downside ahead. If you need equity-like long-term growth, the biggest risk now is letting volatility scare you from stocks. Let me explain.

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