Stock valuations are adjusting downward reflecting lower confidence says Brad McMillan, Chief Investment Officer at Commonwealth Financial Network.
US stocks firmly in the red today as weak data out of China rattled investors. Adding uncertainty of the timing that but that interest rate I. Should we expect more volatility. In the near term let's at Pratt McMillan cheap investment officer at commonwealth financial network. Thanks for joining us Brad appreciate you. Glad to be here. While you thought through that set have their worst third quarter and four years. What move in the market today is that more China or the net. I think in one word uncertainty I think the Fed is part of that I think China's part of it. I also think the government shut down it that's pending is starting Dan. Work its way into investors consciousness. All of those things are making people less certain war. Did investors ignore it deep pretty positive consumer spending data we add up the bank. They ignored it I think what we saw today was right in the middle of the fairway it was what people expected. So no surprise there was no real reaction. I think it tells us the US economy is growing steadily but we already knew that. What do you expect this app market volatility to remain high in the near. Term. Ideal ideal I think we've broken one important level which was 19100 on the S and today. And right now valuations are adjusting downward to reflect public confidence and I think it's quite possible we will see more downward I'll tell. Have quite a bit at that beaches that fed speak that week. We'll also get the jobs report outlook investors be watching closely Tibet speaker and the jobs report due out this Friday for any. I indication on at that rate hike. I think at this point the jobs report is going to be far more important because that's a fact. We already know what the different opinions are within a certain range of the Fed. So if they're gonna active in October it's gonna have a lot to do with the jobs report so that's a fact that's I think what people be watching. So what's your view on that timing that. At that high can it impact on the market. If you look at history. Rate hikes and actually been positive for the market up to about three or 4%. Because they reflected normalization of the economy. I think the market would actually shear that thing coming dancing. Yes what finally confident enough to raise rates I think that would reassure the market quite a bit that it would be good for the market. Any other add final point like to leave us. Well I think the important thing is to pay attention what's going on but not get up not get wrapped up in. Volatility is normal we kind of forgotten that over the past couple of years so just bear in mind why you're doing what you're doing and keep focused on your long term goals. Thanks so much Brad McMillan. Thank you he's chief investment opera or commonwealth financial network I'm sure Pierre Brantley fit as richer.