Equity market has entered a correction: Sanctuary Wealth’s Mary Ann Bartels

Our next guest says the equity market has entered a correction and that of the S&P 500 fails to hold near its fifty day moving average of 5111 which had breached yesterday then the risk has now moved toward the 100 day moving average which is near 4900. For more, let’s bring in Marianne Bartell’s Chief Investment Strategist at Sanctuary Wealth. Marianne, great to have you with us. If we do drop to that, that level, then what leads us there to the downside? Well, obviously as Dom High just highlighted, interest rates have been backing up and the market has not liked that. In addition, the geopolitics I think are making investors very nervous. But Melissa, remember you know markets have 5% corrections 3 or 4 * a year, 10% correction once a year. We were expecting a correction after the first quarter was up 10% and the markets rallied 30% off the October low. So as the saying goes, you know April showers bring May flowers, well, we think the equity markets will blossom. So we’re still buyers of the market here. And in terms of risk, you know we’re watching crude oil. We we think that would be the catalyst for a very deeper correction if crude got above 100 and stayed above 100. But right now we don’t see that happening. We see actually crude oil falling of blooms like the one in your hair, Marianne, very cheery on a Tuesday. How can you miss that beautiful Daisy? But I want to talk to you about some of these sort of things in the markets that we may be watching crude and treasuries because you know in the back of of what’s going on in the Middle East, they’re not necessarily reacting as strongly as one might think. And there are a lot of sort of wonky things going on. I mean crude some think that you know OPEC plus could sort of cap the lid on crude going much higher. And then for the treasury market there wasn’t a huge bid for safety and maybe that’s because of you know, concerns about issuance and the stronger retail sales report. So can you talk to us about how you sort of factor in these, what what otherwise would be indicators to you about where the markets would be going, but how other outside influences are actually clouding, how these indicators are moving at this point? Well, you know, as you pointed out, retail sales came in much stronger than expected and that really moved interest rates, but that’s actually a real positive. That means the economy is doing well, the consumer is still spending and there’s a majority part of the spending in in in our economy. We still have a tremendous amount of cash on the sidelines and net worth is at a record all time high. And although you know there are stresses in the Middle East as long as so the supplies of crude oil are not contained in a very long term detrimental way, we think the markets can recover and it may be an example of history that we can use. As I remember the markets of 1990 when Saddam Hussein invaded Kuwait, markets went down sharply, they went down 20%, but within two months we got a full recovery. So yeah, I don’t think that this is an opportunity to really sell. I think it’s appropriate to review your asset allocation and if you have too much cash on the sidelines, we’re telling clients, you know, get your buy list out. We think that this is going to be a good buying opportunity.