Katz: Buy Into Weakness

Katz: Buy Into Weakness

In an interview with CNBC Market Alert, CIO of Matrix Assets Advisors David Katz offered this advice to new investors who are just getting into the stock market: “Don’t get caught up in the negativity.”

It’s easy to think the worst, especially in times like these when the market is going down it seems like all the news is bad, Katz said. But usually when markets decline like this, they rebound “significantly,” he stressed. It can come out of nowhere and it happens much faster than most people expect. By not focusing on the current negatives, investors can instead put themselves into good position when that rebound comes.

While there are things to be concerned about right now, Katz told CNBC, there is also a lot of good happening and it will serve investors better to look to that good instead of the bad. The economy is doing very well, consumerism is solid, and stocks are actually selling at decent valuations after the most recent drawdown. That offers a buying opportunity for investors, Katz said. He encouraged investors to buy into the weakness, focus on what’s good, and not be too concerned about where the market is going in the next year.