Jonathan Corpina, a senior managing partner at Meridian Equity Partners, joined Cheddar News to talk about what the ongoing sell-off means for the average investor. “So far economic data earning season, which normally has been known to buoy the market is doing quite the opposite at this point," he said. "We're in a wait-and-see pattern, which we've been in for quite some time at this point.”

Closing Bell

'Wait and See' as More Than $7 Trillion Wiped off U.S. Markets in 2022

Welcome back to cheddar news is closing bell. Everyone, I'm Kristin Schoeller live down here on the floor of the stock exchange and any way you slice it. It's been a rough year for the stock market more than $7 trillion January. Well, tech stocks have been hit particularly hard with the NASDAQ down some 30% from its record high in November And the rapid decline raising alarm bells on Wall Street and Main Street is many fear the economy is losing steam following a strong recovery from 2020. Well, joining me now from the floor of the new york stock exchange is Jonathan, Cortina, senior managing partner at Meridian Equity Partners, Jonathan. It's always good to see you. How dire is the sentiment on the floor today? Hey Kristin, nice to talk to you. You know, I don't know if dyer is the right word. It seems like we've continued to have this controlled selloff that we've seen for a few weeks now. The panic and fear is not really in this market yet. The tape continues to move lower and lower. I'd like to see more volume behind this sell off because if we saw significant volume, it would mean to me that we're flushing out and getting towards alone, but right now it just seems like the market is just waiting for what this next catalyst is going to be and if that catalyst moves the market lower or higher. So far economic data earning season, which normally has been known to buoy the market is doing quite the opposite at this point. So we're in a wait and see pattern, which we've been in for quite some time at this point. Um look where the vix is trading highs 30 for the only glimmer of hope that I have right now. Today is the russell seems like it's starting to hang in there. But what we've seen over the last few weeks is the market will run out of steam on thursday or friday and then that risk off trade will come in for whatever can come up over the weekend. So I think we're going to continue to see that pattern for quite some time right now because there are no real major positive headlines that are out there. So here's a question that I have, Jonathan. I think a lot of investors, certainly people looking at the four oh one K. S, they don't really want to wait and see anymore. They want a stock market rally to come even though there still are unknowns out there certainly on the global scale. How long could this wait and see environment persist. I think we're in for for quite a long summer at this point. If you go back to when the Russian Ukraine crisis began, I for one and I know others were thinking, alright, we need just to get through this. This is going to be a very short period of time. And then once we get through that we can handle the domestic issues or domestic topics that we need to work on and show that our economy is stable. That has dragged on for a much longer extended period of time than we would've ever imagined. And I think that's just snowballing every other issue that's out there. Summer is traditionally slow, volumes are low. I think as we're getting towards this summer period, the interest in this market is going to draw back, we're gonna continue to see pressure on this market, 3rd and 4th quarters when we should pull back in And Christian as you were saying, 401K investors. When is the market going to move you? Few factors that are there. We were up, your portfolio was probably up 25% last year. So to see some of that come off the table right now, let's keep things into perspective, right? You're probably up net net over the last 2-3 years. You're probably up 15% 12%. I think that's something to be pretty happy about. Um, and, and then also from a longer stand 120.41 K investors, I'll even look for myself. This is, yes. Unsettling to watch your market, watch your portfolio swing as much as it does. But when you're not retiring for some period of time, Five years, 10 years, 15, 20 years down the road. These are blips that we're going to see. Look at the long term chart of the dow and the S and p we've had significant Pullbacks over time, those Pullbacks are very small in a long time chart. So knowing that the volume is not super heavy, I'm Jonathan. It seems as if panic selling hasn't set in just yet. Speak to me more about the volumes that you're seeing. Would you call them moderate? Would you call them light? And what would signal that we've reached the bottom? I'll go back to that volume once we start to see some real heavy selling heavy volume, I think that will start to signify to show us the bottom, but we're gonna need a few days of that. And also from a, you know, a charting point of view, look at when, when we have consecutive days of the market trying to create new lows and bounce off of that. But once again, I think it's gonna take a little bit time for us to get there. It's gonna be a choppy summer. Another question that I have is how long could it take us to recover from here? So if you do have a four oh one K, you're you're looking at your investments and you're thinking, wow, I've seen a lot of gains wiped out in a short amount of time. I have to wait and see now, Could it take five or 10 years to recover the losses that we've seen and certainly the negative sentiment out there right now. I don't think we will see that the snowball effect works on the way up and it works on the way down. So once this market starts to turn, I think everyone's gonna start thinking this is gonna be the bottom and they're gonna start playing hopscotch to jump over everybody to get back into this market. And also look how quickly this market recovered From the 2020 12, 2020 lows from the global pandemic crisis that we had. I mean, look at those numbers, look at the volatility that was on the market and that same question was posed. How long will it take to recover from here? We recovered very quickly from there. I think it's going to take some time to get there for this, but recovery won't take as long as we've seen before in the past. All right, Jonathan. Cortina, as senior managing partner at Meridian Equity Partners, joining me live from the floor of the new york stock exchange. And what's another market meltdown, Jonathan, thank you for adding some reason here to these completely wild markets