Barron’s Weekend Roundup: Making sense of the market correction

The bull market isn’t over yet. The August 24 stock market correction may have shaken some, but U.S. shares will still see gains for 2015, Barron’s writes in this week’s cover story. Analysts say the S&P 500 will hit 2150 by the end of the year, a more than 10% increase from Friday’s close.

ETFs dropped sharply on August 24, during the massive market correction. ETFs should offer investors prices close to the underlying stocks, but that Monday ETFs dropped more than the stocks, writes Barron’s. Some of the problems seem to stem reflect the flash crash in 2010. Regulators will need to take a look at how to ensure smooth ETF trading in the event of another such market swing.

Leah Zell, head of Lizard Investors, says international small-cap value investing is the way to go. Zell tells Barron’s that China’s slowdown will be felt unevenly. “International small-cap investing is the last refuge of stock-picking,” she says. Lizard looks at investments a year or two out, or even three to five years if possible.

Photo: Jim Bowen