Ariel Investments Chairman, John Rogers, advocates making the most of the rout in equities, advising investors to consider it the opportunity of a lifetime.
Once In A Lifetime Opportunity
The sharp sell-off in equities is a buying opportunity that does not present itself often, and investors should take advantage of this opportunity. Appearing on CNBC Wednesday night, Rogers shared his point of view, “I think this is a maybe once in a lifetime opportunity to buy stocks at bargain prices.” He quoted Sir John Templeton, a famed investor, “Buy when there’s maximum pessimism.”
The Voice Of Experience
Rogers is the founder, chairman and CEO of Ariel Investments and also the company’s chief investment officer. He has been featured alongside Warren Buffet, Ben Graham and Sir John Templeton in the book “The World’s 99 Greatest Investors,” written by Magnus Angenfelt.
Highlighting his background, Rogers advised, “We’ve been around 37 years at Ariel, and I know I said that ‘once in a lifetime’ chance to buy in ’87 and again in 2008, but I do really think this is an opportunity to take advantage of the volatility, and take advantage of the market.”
Budding Optimism Among Analysts
The Chief Investment Officer of Miller Value Partners said on CNBC’s “The Exchange,” “I think this is an exceptional buying opportunity.” Hedge fund Pershing Square’s manager Bill Ackman also revealed that he had exited market hedge positions earlier in the week and used the resulting $2 billion to accumulate fresh and existing positions.
Ackman is investing in Agilent Technologies Inc. (NYSE: A), Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B), Hilton Worldwide Holdings Inc. (NYSE: HLT), Lowe’s Companies Inc. (NYSE: LOW) and Restaurant Brands International Limited Partnership (OTC: RSTRF). His fund has also reestablished investments in Starbucks Corporation (NASDAQ: SBUX), which it had closed in January.
DataTrek Research co-founder Nicholas Colas, who follows a trading playbook based on market action, warned that investors have not yet seen the market bottom.
The Dow Jones Industrial Average and S&P500 had both rallied for two consecutive days as of Wednesday, the first time since February, even though the two indexes are at levels below their February all-time highs due to the impact of the COVID-19 pandemic.
Photo Credit: Screenshot of Online Stream.
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