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Quick to fall, quick to rise -- such has been the story of the stock market. After tumbling more than 30%, this week was met with the fastest period of gains since the 1930s. But will the fierce rally last? Dan Chung, the chief executive officer of Alger, joins the “What Goes Up” podcast to share his thoughts and explain where the fund firm is looking for investment opportunities.
Some highlights from the conversation:
“It's a natural snapback to just the rapidity and the ferociousness of the decline, of which, as you noted, we haven't seen in 90 years. I think it is also fundamentally the signs of the markets recovery and the pattern that will probably unfold over the next couple months. In particular I think we're likely to see some retest, i.e. markets falling back a bit from where we are as we process a lot of news over the next couple months. But I am actually fairly confident that the absolute lows that we just saw will probably be the hold, we won't be going lower than that, and it is sort of the process of beginning of recovery actually.''
“We're trying to identify the companies that we're pretty confident will survive, that will have businesses that will come back and that actually won't be particularly impaired. One of the industries that we think is very interesting is the restaurant industry, which has been forced to shut down. So we've been looking at the restaurant industry, its distributors, suppliers, as well as its vendors. Many of them have been hit, just broad swaths, stocks that have gone down 30, 40, 50%, and we look at the opportunities, especially when we find companies that we think have liquidity in the short-term, and then longer-term are operating well run companies and vital to the success of the industry.''
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