David Rubenstein, Carlyle Group, at CNBC’s Delivering Alpha, September 28, 2022.
Scott Mlyn | CNBC
Investors looking to trade and position for long-term growth should act now instead of waiting for the stock to bottom. David Rubenstein said on Wednesday.
The Carlyle Group co-founder said during CNBC’s Delivering Alpha Investor Summit in New York City: “People shouldn’t be scared to go in and buy stuff now. “The great fortunes in the investment world are often made by buying things at a discount.”
During the past decade, there have not been many drops when the US stock market was in a bull cycle. Now, however, the stock has fallen into a bear market and remains volatile, meaning many names are trading at a relative discount, Rubenstein said. The S&P 500 index is down more than 15% to close on Tuesday and is down more than 23% from its January record.
Rubenstein sees good stock value now and continues for the next six months – the length of time he thinks will taker Federal Reserve interest rate hike and policies from Congress to begin to reduce inflation.
He also noted that investors should start buying now rather than trying to time the market bottom.
“It is a chore to find the bottom in the market or the top in the market,” he said. “Trying to wait for the absolute bottom is probably a mistake, in my opinion.”
Rubenstein said today the market is much closer to the bottom than the top. He doesn’t see stocks falling another 50% or 25% from current levels.
But not everyone is as optimistic as Rubenstein about stocks today. Paula Volent, vice president and chief investment officer at Rockefeller University, said during Wednesday’s event that the macro environment is “very scary for me,” pointing to problems arising from Russia and China. .
She notes that her cash allocation is now the highest at any point in her career.
However, for investors looking to take advantage of the market, she recommends active management. “You must find activity [management] and you have to go into thematic areas where you can make some profit,” Volent said.