Despite another intraday high on the Dow on Jan. 3, the markets overall ended last week on the downside. Even declining oil prices aren’t helping stocks get back to record levels today. Michelle Caruso-Cabrera spoke with two analysts on “Morning Call” to find out what’s going on.
Owen Fitzpatrick of Deutsche Bank Private Wealth Management and Quincy Krosby of The Hartford appeared on the show. Both agree that the market is overconcerned with the Federal Reserve right now. Will the U.S. central bank cut rates? Krosby and Fitzpatrick say yes, the Fed will ease up during 2007 – as many as three times, according to Fitzpatrick. A drop in interest rates will give equities “room to run,” Fitzpatrick says, and historically stocks tend to do well under these conditions.