The recent market sell-off was not the start of a longer-term bear market, but rather a temporary “midlife crisis,” veteran wealth manager Larry Glazer told CNBC on Tuesday.
Glazer attributed the sell-off to investors, who had concentrated their portfolios in a handful of names, getting nervous. As a result, “everybody ran for the exits at the same moment,” the managing director and co-founder of Mayflower Advisors said on “Power Lunch”
While the markets dropped, investors were “ignoring all the good things going on in the economy” such as a strong labor market with the lowest unemployment rate in nearly 50 years.
“In a midlife crisis people do irrational things and they do them at inopportune times,” Glazer said. “They usually regret them later on.”
On Tuesday, the market started to move back higher: all three indexes jumped at the open, buoyed by strong quarterly earnings releases from some of the largest U.S. companies.
Glazer believes last week’s scare makes right now an “opportune time” for investors to rebalance their portfolios. “Take a step back and look at the economy around us,” he said.
Art Hogan, chief market strategist at B. Riley FBR, shared a similar view on the direction of the markets ahead of earnings season.
“A lot of things that we were hyperventilating about last week are just calming themselves down this week,” he told “Power Lunch.”
“The market is in a much better place than it was two weeks ago to start earnings.”