Wednesday, 20 January 2016

Stocks rise as some see buying opportunity

US stocks were little changed on Tuesday, the S&P 500 closing less than 0.1 percent higher.

An early rally in stocks faded as oil resumed its decline. West Texas Intermediate crude fell 3.3 percent on Tuesday.

Stocks were more positive elsewhere on Tuesday. The Shanghai Composite jumped 3.2 percent and the STOXX Europe 600 rose 1.3 percent.

A sustainable rally may take a while to develop though, according to Wells Capital Management's Jim Paulsen.

Paulsen told CNBC on Tuesday that the S&P 500 will "break below those August lows and probably break 1,800".

However, at that level, the market becomes "a very good value buy again".

Aberdeen Asset Management thinks so too.

In an interview with Bloomberg, its chief investment officer Anne Richards said that the selloff “may be the best buy opportunity we’ve seen in a long time”.

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