Following Black Monday’s stock market selloff, Senior market commentator, David Buik, joins Nick Batsford and Zak Mir in the Tip TV studio to discuss what happened, and what we should expect to happen next.
No hint of recession in the air
A market correction has been long overdue, says Buik, who believes that there are no indicators of a possible recession. China may be facing difficulties, but the effect felt in the rest of the world was just a pullback. Zak Mir is erring more on the side of caution, but speculation will continue until there are further developments in China.
Oil range likely to persist
With the likelihood of a Federal Reserve interest rate hike all but discounted, Buik believes now is a good time to find buying opportunities in individual companies in the media and pharmaceutical industries. With regards to Oil, it’s another indicator that recession is unlikely as it persists below the $40 level. Zak Mir and David Buik both concur that its new range will likely continue for some time, until Saudi Arabia and OPEC affect supply levels.