Tuesday's Selloff Was Just Nature Taking Its Course

Wednesday, 28 Feb 2007 | 10:34 AM ET

OK, investors. Just relax.

That's the message from Alison Deans, director of Investment Policy at Neuberger Berman, who appeared on "Squawk on the Street."

Deans told CNBC's Mark Haines that Tuesday's global financial shock was just economic nature taking its course -- and that the market was "overdue for some kind of correction."

After all, she declared, the current era's "longest run-up in stocks" was really indicative of some kind of "euphoria" -- rather than sensible confidence.

Market Pulse Check
Parsing the market's volatility with Alison Deans, Neuberger Berman dir. of investment policy, and CNBC's Mark Haines

But the Neuberger director pointed to "very strong liquidity" as well as corporate cash flow yields that remain "still strong." While economic growth may not prove very dynamic, Deans believes it will still be positive -- and perhaps the best omen of all, she notes that "the Fed stopped tightening."



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