Axonic Capital on Bloomberg TV: Has the Market Reached Its Bottom?

Aug 15, 2022 | In the News

The persistent market volatility and latest intraday drop among the major indices have created more bears than bulls among equity market investors. While this typically is a sign that the market has reached the bottom, now it may not be as simple. Bloomberg TV spoke with Axonic Capital Director of Research Peter Cecchini to find out why.

According to Cecchini, the vast number of bears is not reason enough to deem a bullish future for equities. As a result, investors may want to consider diversifying their portfolios towards other asset classes. 

“The idea right now is there are a plethora of asset classes in which one can engage outside of equities,” explains Cecchini. “Protecting your downside in markets like this by investing in cash-flowing assets that are somewhat protected from inflation is one of the ways you can actually express a bullish view outside of equities.”

Pointing toward inflation as the main cause, Cecchini argues that recent market movements are more similar to the market action that occurred early on in longer-lived bear markets than post-bear market rallies.

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