Russ Koesterich, global chief investment strategist at BlackRock Inc., said that there needs to be a fundamental catalyst to signal that the market has reached its bottom. The signal may come from corporate earnings, economic data or an improvement in the Chinese economy.
"You need to have some stabilization of fundamentals to give people conviction this has gone too far," Koesterich said.
The US stocks have fallen, but they are not cheap enough for investors to start buying them. Besides, Russ Koesterich does not exclude a bearish trend on the market. He supposes that exactly during such periods buyers will come in because the US stocks will match their fundamental value.
Koesterich also added that it is not clear whether oil has reached the bottom. Recently, shale producers have become more efficient and most producers in the Middle East have lowered the cost of production.
