Nasdaq 100 down over 20% YTD: Is cash really the king right now?

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The tech-heavy Nasdaq 100 index continues to slide, even after strong quarterly results from the likes of Apple and Microsoft that further bolsters the thesis that we’re in a bear market, says Josh Brown.

Brown’s remarks on CNBC’s ‘Halftime Report’

The CEO of Ritholtz Wealth Management reiterated this afternoon on CNBC’s “Halftime Report” that investors are better off in cash at present, considering the macro environment.  

You have to go back to 1980 to find a year where stocks were down double digits and bonds were down worse. There has been no place to hide other than cash. Even a five-year treasury, you got slaughtered on duration.

The Nasdaq 100 is now down more than 20% year-to-date and the S&P 500 index is testing its March 8th low.

Market doesn’t care about strong quarters

According to Josh Brown, the strength of quarterly results for any given company is no longer relevant since the market, for now, is not in the mood to reward strong fundamentals. He noted:

Nobody cares about earnings. If you had a good quarter, your stock’s down 5.0%. If you had a neutral quarter, your stock’s down 12%. If you had a really bad quarter, you’re down 40%. That’s the environment you’re in.

His outlook is in line with Steve Weiss (Short Hills Capital Partners), who’s been warning for weeks that the U.S. equities will remain in the downtrend.

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