Don Hays Suggests the Hurricane Watch was Overhyped
Nashville, TN (PRWEB) August 30, 2011
Although the stock market has been in what most analysts would consider a correction over the past few weeks, according to Don Hays, founder and chairman of Hays Advisory, the negative attention that has been given to the stock market may have been a little overhyped.
In a recent report, Hays discussed how we had that “hurricane” last year when the “Double-Dippers” came out with their droning that the old growth economy was sinking. And then about a year later, just five weeks ago, they came out again with their ominous messages trying to warn everyone. Hays suggests, “They are screaming, and the echoes of their screams take special volatility as the investing public has left the floor leaving the computer trading with the floor to itself causing stampedes first in one direction and then in the exact opposite direction.”
Hays says that the traders love warnings like those we’ve recently seen, since they make their money selling volatility. Yet, while some economists expect a “New Normal” to take hold leading America on a path of slower growth, Hays sees the opposite taking place in the stock market as the higher growth stocks are being rewarded more than their value counterparts, especially as many corporations’ earnings improve quarter after quarter.
Overall, Hays believes we are at a point, much like last year, where we’re waiting on the torrential rains to subside, as panic has reached its peak, before the clouds move away and clear the sky allowing for stocks to reach their full potential as better news becomes the pillar of the mainstream opinion.
About Hays Advisory, LLC
Hays Advisory produces stock market and economic analysis for individual and institutional clients that is both widely followed and internationally recognized. Subscribers may gain insight from our disciplined, unemotional approach and a better understanding of the factors we believe are driving long-term market trends.
In addition to providing research, Hays Advisory manages money using a tactical process that can raise cash if market risk is high. Founded in 1999, this independent, employee-owned investment firm manages portfolios for both individual and institutional clients.
Hays Advisory’s strategy is to take advantage of opportunities at major market turning points. Because market expectations are often wrong at or near these turning points, emotional decision-making can lead to investor underperformance. Using a tactical asset allocation model, Hays’ strategy attempts to remove emotion from the investment process.
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