Kevin Simpson: ‘it’s a buying opportunity every time we see pullbacks’

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Oct 7, 2021
  • Kevin Simpson explains how to come out of the ongoing market volatility with profit.
  • Citi's Kristen Bitterly recommends investing in companies with strong balance sheets.
  • The benchmark S&P 500 index opened more than 1.0% up on Thursday morning.

There’s a lot that could scare investors into staying away from the markets right now; inflation, rising rates, issues with China, supply chain constraints, debt ceiling, the list goes on. Amidst the concerns, however, Capital Wealth Planning’s Kevin Simpson says the ongoing pullback is a buying opportunity.

Simpson’s remarks on CNBC’s “Squawk Box”

On CNBC’s “Squawk Box”, Simpson said he’d tap into the opportunity to invest in “quality names” if the market slides another 5.0% in October.

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These markets are like volatile relationships that we just can’t live without. It requires patience and careful discipline to come out of them profitably. But it’s a buying opportunity every time we see pullbacks.

According to Simpson, times of volatility is where investors get to make “big money” as long as they can separate raw emotions from the metrics. He added:

I believe in the three Rs. Rules, risks, returns. You can’t get caught up in the day-to-day fluctuations and have to stay focused on the long-term. Stay disciplined and have a rules-based approach. If you can manage risk, returns will take care of themselves over time.

What Bitterly recommends investors should do

During the same interview, Kristen Bitterly of Citi Private Bank said now would be the time investors focused on fundamentals and quality.

Investors should lean into companies that have strong balance sheets, and have been able to consistently grow their earnings and dividends, to reduce volatility and add yield to their portfolios.

Earlier this week, Morgan Stanley’s Katerina Simonetti said an up to 15% correction before the end of the year was “inevitable.

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