Markets mixed, “dips are meant to be bought”

Markets were mixed on Wednesday.

The S&P 500 rose 1.1 percent and the STOXX Europe 600 rose 0.5 percent. However, th Shanghai Composite plunged 2.0 percent.

Christopher Metli, a quantitative and derivative strategist at Morgan Stanley, said that “dips in the equity market are meant to be bought in this environment”.

Similarly, Mehvish Ayub, senior investment strategist at State Street Global Advisors, told CNBC that fundamentals are “very good” and “this is an opportunity to buy on the dip”.

However, Ed Clissold, chief US strategist at Ned David Research, said: “Higher interest rates could moderate broad market gains, multiples should compress, and the last phase of early cycle themes could lead to Value exerting much-awaited leadership over Growth.”

Similarly, Fundstrat Global Advisors’ co-founder and head of research Tom Lee told CNBC that tech stocks will not be doing as well as the economy re-opens.

“You’re going to really want to be in asset-heavy, cyclical, economically sensitive companies,” he said.