The anxiety running through the market is causing a cyclical correction that could last through the end of 2015. Fortunately, the coming year looks profitable once the storm passes, said Bill Greiner, chief investment strategist for Mariner Holdings. In Greiner’s view, global market valuations currently appear to be 5% to 10% lower than has been the case, on average, over the last 20 year period. That said, he is concerned over the very short term about overall market volatility and seasonal trading patterns which suggest further downside pressures may continue. For investors looking to put money to work during this pullback, Greiner said U.S. small caps are a good place to start due to the lack of international exposure. ‘We think over the next four quarters there is going to be adjustments to the downside in earnings flow and it’s going to be with international companies,’ said Greiner, who is also bearish on emerging markets. Greiner said investors looking for yield should avoid junk bonds and start picking away at MLPs. ‘We feel that this area has been washed out,’ said Greiner. ‘They may continue to see some downside pressure with oil prices going down further, but nonetheless we believe values are starting to poke their heads above the water there.’
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