Andrew Holland, CEO (equities) at Ambit Capital has expressed his views on the ongoing correction in the stock market and his frank and free opinion on the subject is as elucidated below:
That’s the hope, isn't it? I think everyone's been hoping for a correction and that will be a good entry point for investors. But to be honest, I don't think there is just a lot of conviction globally about markets. Yes, every market had a great run. We all know it is liquidity driven. I think that's where the conviction is not there for investors to chase. People, who have been sitting on the sidelines, are waiting for lower entry points. So, it could be a bit of self-feeding. The oil price is a particular concern for me. I think that's what's going to hurt the market rise globally, if it continues to head north. I am worried about China. Over the last two years, that market is down nearly 40-50%. That doesn't bode well for what's supposed to be the fastest growing largest economy globally. So, there is something wrong there, there is something broken. I am not sure we will see what it is because the Chinese authorities have a great way of hiding figures. All the figures are not really transparent. So, it's on my mind. I think we had a great run. I am not trying to be negative, but I think yesterday gave us a good idea that how fickle, how uncertain investors are and how quickly share prices can fall and sentiments turn negative.