Regions McKnight sees storm clouds, Elliott Wave's Gilburt sees typhoon

Alan McKnight, chief investment officer at Regions Asset Management, sees storm clouds on the horizon for the market and the economy, but his outlook remains benign, suggesting that a well-diversified portfolio will withstand heightened volatility for the remainder over the year. He says we have experienced a muted, rolling downturn and doesn't see a full-blown recession happening. By comparison, Avi Gilburt, founder of the Elliott Wave Trader, entered the year calling for the market to reach record highs no later than the second quarter — which it has — but then to turn into the start of a full-blown bear market that will last years and bring the Standard & Poor's 500 down by well over 50 percent. Gilburt says that the market remains on track for that. In the middle of that kind of disagreement, it's hard for investors to know what to do, and Andy Reed, head of investor behavior research at Vanguard, discusses research into certain biases that are leading most investors to make mistakes that result in diminished gains and missed opportunities.