Market Downturn "Healthy" For 2007 Says SB's Manley

Tuesday, 6 Mar 2007 | 4:32 PM ET

Smith Barney’s market strategist for private clients told CNBC’s “Closing Bell” that last week’s market downturn was healthy and he expects 2007 to be a strong year. “We didn’t see anything that changed our opinion,” said John Manley. “This sort of stuff has to happen from time-to-time because it clears out the tubes and re-adjusts the economy.”

Manley said the sharp market downturn and quick rebound limited the damage.

“The faster is happens, the less drastic it has to be – and this happened pretty fast,” Manley said. “…The fact that we reacted so quickly I think ultimately keeps it on the straight and narrow.” Manley said there have been about 50 days since 1961 when the market lost 3% or more, but the market has always made up the losses and gained new ground.

“The average return six months out is double what the average six-month return is – 9 % vs. 4% and change,” Manley said.

He said Smith Barney did some selling for its private clients and noted that individual investors didn’t panic during the downturn.

Market Freeze
Discussing whether a string of good earnings reports are enough to keep Wall Street smiling through all of 2007, with John Manley, Smith Barney Private Client Strategist and CNBC's Maria Bartiromo



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  • With almost 30 years experience in business television, Bill Griffeth is co-anchor of the 3 p.m. ET hour of CNBC's "Closing Bell."

  • Kelly Evans

    Kelly Evans is an on-air correspondent, reporting across CNBC's business day programming. She is co-anchor of CNBC's "Squawk on the Street."