'Buying the dip' could be a huge mistake, market expert says

Expert warns investors to ignore 'generational buy' hype during historic market volatility.

Transcript

00:00During this period of extreme economic uncertainty and more active trading approach is probably a lot

00:07smarter than what I'm hearing from a lot of analysts, which are saying generational buy

00:13opportunity. We don't really know that yet. This is record amount of volatility for so long.

00:19We've had 4,000 point drops in the month of April alone, when there've only been seven in the entire

00:26history of the Dow. And so that's kind of a situation where if you are day trading, you're

00:33doing great. If you're looking to invest, I'm not saying don't, but what I am saying is that really

00:40know what your risk parameters are and your reward parameters. Because at this point, even though

00:46people are saying, for example, NVIDIA, great buy, they would have been saying it's a great buy at

00:51180, at 140, at 100, at 90, and people averaging down possibly could get hurt. We're not into the

01:00falling knife. Wait for some level of stability. What we do know is from a generational buy

01:07opportunity standpoint, it may not necessarily be in the areas that people think. For example,

01:14we are really looking at some commodities. We had been in gold for years. That was certainly one of

01:21those generational buy opportunities. And now with the silver gold ratio that peaked out at around

01:26105, which was just historically a new high, with that turnaround that we're experiencing right now,

01:34it could be that silver is the next generational buy opportunity. Now, mind you, commodities are not

01:40stocks. You do have to trade them as such. But if you're looking around the board at equity,

01:45you have to look at what is the emerging trend. And if it's tech, I'm not saying it isn't. But you

01:52also have to understand that that is a victim, if you will, of these tariffs. And we don't know what

01:58that's going to do going forward. There are certain things that might get a pass, things made in the

02:03U.S.A., for example, might be more interesting to look at at this current time.