How Investors Should Approach A Market Selloff?

Credit: The Street
Published on October 8, 2019 - Duration: 01:37s

How Investors Should Approach A Market Selloff?

Worried about a market selloff heading into the October trade talks?

TheStreet's Tony Owusu and Real Money contributor Chris Versace weigh in on whether or not investors should be worried about a market selloff and what investors should do if they have stocks in their portfolio with China exposure.

Let's start with what exactly is driving markets.

"In a word, I would say it's pessimism and that pessimism is leading to defensive trading.

Take Domino's Pizza for example.

It starts a day up, down big after the company cut guidance, they reported soft earnings and soft guidance.

But then the CFO gets on the conference call and he says that they're doing a billion-dollar share buyback program.

Everybody comes back in, the stock is up big, I think 5% on about six times a normal volume.

So the stock is doing well because people are looking for defensive stocks right now," said Owusu.

But what if you have stocks with China exposure?

Watch the full interview for more.

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