Market Volatility Triggers Warning from CEO Vance Howard at Howard Capital Management
Vance Howard, CEO and portfolio manager at Howard Capital Management, has expressed his concerns about the current state of the market, stating that it is “teetering on the trend line of going negative.” Speaking to Frank, a financial news anchor, Howard explained how recent events have changed his approach to investing.
He said that the banking crisis in the US and Europe has had a significant impact on his outlook and has caused him to rethink just how fully invested people should be at present.
Howard went on to explain that his firm’s trend indicator is “teetering on whether it’s going to hold or it’s going to turn negative,” which is an important indicator that many managers look at.
He warned that the market is “not the time to be bullish” and that banks are “imploding,” making it a stressful time for investors.
He added that the financial system’s failure is the “worst that can happen” and that investors need to “wake up to this.”
Despite Howard’s concerns, he did offer some investment advice, stating that he is currently holding 60% of his portfolio in equities, including mega-cap tech stocks, such as the triple cues.
He also suggested that a one-month or three-month treasury is a good place to park money as it is safe and boring.
His pick for investors was the ETF ticker, BIL, which invests in one to three-month treasuries.
Howard’s warning comes amid rising concerns about the market’s stability, with JP Morgan predicting that the Federal Reserve’s tightening policy could cause a recession later this year.
The bank also expects the Fed to raise rates by a quarter point next week, a move that Howard believes is necessary to maintain credibility.