Merrill advises clients to take these moves amid higher volatility

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The volatility that has plagued markets for weeks has prompted some investors to ask: “Is this the bottom?”

But waiting for market lows can be elusive.

“There is no ‘bottom,'” said Chris Hyzy, chief investment officer at Merrill Lynch and Bank of America Private Bank. “We’re in the process of bottoming out.”

This may be resolved over time, Hyzy added.

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Additionally, two catalysts may help improve investor sentiment.

The first is inflation peaking. “We expect this to happen in the next few months,” Hyzy said, another will be strong earnings heading into 2023.

“If these two things come together, investor psychology will improve over the next 12 to 18 months,” Hyzy said.

inflation data Data released on Friday suggested that price gains may be slowing, which helped push the stock higher noon and positioning Dow Jones Industrial Average It could break an eight-week losing streak.

One reason the volatility has worried market analysts is the higher-than-normal churn in both stocks and bonds. Bond and stock volatility haven’t been so closely correlated since 1994, Hyzy noted.

“This is new to all kinds of new investors, and it’s a story that more experienced investors don’t want to see anymore,” Hyzy said.

rebalancing opportunity

opportunistic

“If you do this at the end of the year, you don’t know where your portfolio or specific positions will be by then,” Grunfeld said.

“This allows you to help take advantage of peaks and valleys throughout the year,” he said.

other functions Includes tax-efficient rebalancing, quarterly loss collection, and investment strategies that emphasize tax approaches.

According to Glenfield, activity levels for new products are increasing every week.

“We’re pleased with the response from our customers,” he said.