When volatility soars, it's time to buy | Chesley Investment Advisory Executive Director Park Se-ik

Summary

Park Se-ik discusses why rising US yields do not change his equity-friendly outlook: weak US employment should slow consumption and GDP, leading rates lower next year and supporting stocks. He also argues that bond-market volatility spikes have historically been equity buying opportunities. He sees the current bond yield rise as a long-term fixed-income opportunity rather than a disorderly selloff, and he expects September caution to limit downside because investors are already defensive.

• The host asks whether rising US yields change Park's view that stocks can rally into next year.
• Park says weak US employment will slow consumption and GDP growth, pushing yields lower and supporting equities.
• He presents bond-market volatility spikes as buy-the-dip signals for the S&P 500.
• He notes the MOVE bond volatility index remains below long-term averages and that rate moves are gradual compared with 2022.
• He relays that fixed-income managers view current yields as a long-term bond opportunity.
• He argues September caution is already consensus, so the market may not fall much even if central banks raise rates.
• He advises longer-term investors to use sector volatility to add sector ETFs in retirement accounts when the structural thesis remains intact.