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Market Experts Take Divergent Views on Global Economy

Investment guru Dennis Gartman said on CNBC's "Fast Money" on Tuesday he believes we are now in a global bear market, and mortgage problems are just getting started -- in contrast with recent optimistic comments from Treasury Secretary Hank Paulson. So who's right? CNBC asked two market experts for their take on the global economy.

Steve Auth, chief investment officer of global equities at Federated Investors, said he expects further market declines in the short term.

"I think in the near term we're going to see further pain here," Auth said. "I expect to see further downside before we stabilize and take another leg higher."

Auth said he thinks the U.S housing market and economic tightening in Asia will start to take its toll. "Japan is definitely going to raise rates again, and India is going to, and China is going to do more," Auth said. "This is just a shot across the bow."

But Hayes Miller, head of global asset allocation at Baring Asset Management, believes that the goldilocks economic scenario remains intact, and recent data has not changed this consensus outlook.

"I don't think there's anything new. This is all about investor reaction and it's all about investor psychology, and there's just very little fundamentally [bad news] here," Miller said. "Subprime may get worse in fact. The mortgage numbers may get worse, but I think Secretary Paulson is correct, and I think it's going to be confined to a very small segment of the market."