“The stock market has already discounted a significant degree of economic recovery. Therefore, do not cease to improve, data here could not do much to raise prices. The risk and reward is not here “.
It is Bryn Mawr Trust Jeffrey Mills, who oversees $ 16 billion in assets, speak to CNBC on Friday, on what’s next for a stock market that is declining to start the week. At last check, futures for the Dow Jones Industrial average
have been pointing to a triple-digit drop.
“The injections of liquidity the Fed is introducing on the market is really decreased,” Mills said. “The Stocks are discounting an environment that is not necessarily a reflection of not only economic fundamentals, but the profit fundamentals.”
Mills said that using trailing price to earnings ratio as a measure, the assessments have not been as high since the internet bubble. In this climate, the Mills are gone underweight in the stocks of mid-April.
“You have information that are all over the map. The Sense data is not really clear. One day, you get a positive virus title. The next day, you get a negative,” Mills said, explaining that investors need not be too bearish or too bullish. “The positioning must be somewhat nuanced.”
Watch the interview:
Last month, Mills has spoken of the benefits of having money on the sidelines in this climate.
“When people ask me,” How should I invest? I need this money in one or two years.’ I tell them that they probably should not even be in the stock market at all,” Mills told CNBC, adding that the council applies today more than ever.