“The market action is too volatile to buy stocks at the moment,” Michael says. “The last time US markets rallied c.10% in a single session was October 2008. Previous to that, it was 1931.”
“The huge moves indicates markets are likely to continue to gyrate, with a downward bias.”
“Small caps can be highly illiquid in an extended downturn. Investors may consider shutting small cap positions now, despite lower prices, especially where they anticipate a longer period of market disruption,” he adds.