Trader Willis: "Correction has to happen"
The political upsets in the Ukraine seem hardly more than background noise on Wall Street’s busy trading floor. After a brief pullback on Monday markets are back on track again. Trader Ben Willis explains why we might have been better off with a significant correction.
"The market was lower for one day, on Monday, based on the situation in the Ukraine. Since then, the market has recovered", says Willis. "It’s not good to move to the upside this fast. We need to have a pullback." Why does the US market simply shrug off the struggles in Crimea? According to Willis, only the companies that have economic exposure on site are directly affected. However, investors are best advised not to prematurely dismiss the issue: Economic sanctions against Russia could have global repercussions. The correction Willis is hoping for could very well occur. Not a bad thing per se: "View a pullback as a buying opportunity, not as a loss."
For Willis’ view on the importance of the globally intertwined central banks and the market’s ability to digest the recent labor statistics, tune into "Inside Wall Street" with US correspondent Andreas Gross.
Looking for the German version of the interview? Click here.
Redaktion: Fabian Haas