Where to look for opportunity in markets during sell-off: Portfolio manager

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Timothy Lesko, portfolio manager at Granite Investment Advisors, joins “Squawk Box” by phone to discuss which stocks he’s holding amid the market sell-off.

Stocks plummeted once again on Thursday after President Donald Trump and the Federal Reserve both failed to quell concerns over the economic slowdown stemming from the coronavirus, leading to a historic drop for the U.S. markets.

The Dow Jones Industrial Average closed 2,352.60 points lower, or 9.99%, at 21,200.62. The index had its worst drop since the 1987 “Black Monday” market crash, when it collapsed by more than 22%.The S&P 500 plummeted 9.5% to 2,480.64, joining the Dow in a bear market. The S&P 500 also had its worst day since 1987. The Nasdaq Composite closed 9.4% lower at 7,201.80.

“The coronavirus is scary and people don’t know what to expect,” said Kathy Entwistle, senior vice president of wealth management at UBS. “It’s like the tsunami is coming. We know it’s going to hit any day and nobody knows what the outcome is going to be.”

The major averages got a brief respite during the trading day after the Fed announced it will ramp up its overnight funding operations to more than $500 billion on Thursday. It will then offer more repo operations totaling $1 trillion on Friday. The Fed also expanded the types of securities it would purchase with reserves.

However, stocks quickly traded back towards their session lows as investors awaited more aggressive measures to support the economy and target the virus outbreak directly.

“These changes are being made to address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak,” said the statement from the New York Federal Reserve, which conducts these operations on behalf of the Fed.

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Comments

John Cordova says:

short term, LOL. in Free america if someone wants too go they go, regardless of consequences. this virus will linger in America for at least a year before it gets controlled.

John Cordova says:

Is this what the republicans meant when they said, it will trickle down?

Bruce DaBuc says:

MAYBE WE NEED TO "INVEST" ON THE 85,000,000 PEOPLE WE HAVE WITHOUT HEALTH INSURANCE OR UNDERINSURED, AND THOSE WORKERS WORKING WITHOUT INSURANCE OR SICK LEAVE, EH?

Bruce DaBuc says:

HOW THAT STOCK BUYING WITH TRUMP'S FREE COMPANIES' TAX CUTS IS WORKING OUT, EH?

Jonathan Sanchez says:

The only opportunity is get out before you loose it all

Russell Racey says:

There seems to be a lot of very nervous GOP tax-cut recipients today …

Jim Younger says:

Corona doesn’t care about freedoms and rights !! We are in a situation !! The only strategy is to try to keep the hospitals functioning. When they become overloaded , that is the boiling point !!

Getthefuckoffmylawn says:

Opportunity? For what? The whole stock market is going to 0.

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