Bull Market Will Keep Charging, Analyst Says
Matthew Patsky, portfolio manager at Winslow Management, told CNBC’s “Power Lunch” that the bull market will continue as recession fears fade.
“We’re certainly seeing a pause today, and I’m not suggesting that there won’t be pauses along the way,” Patsky said. “We have good conditions for a continued rally in the market and, in our case, we’re still seeing a lot fast-growing areas in small caps. That’s where we’re primarily focused. There is still value to be found in this market.”
He likes green energy and the healthy living sectors. He believes aging baby boomers will boost healthy living stocks.
David Tice, portfolio manager at the Prudent Bear Fund, took a more cautious view.
“We’re worried about three things: liquidity, credit and risk,” Tice said. “The liquidity that’s fueling this market -– stock buybacks and private equity -– is coming from a massive increase in debt. We think there’s been a massive global debt binge. Economists have said over the last four years (that) monetary growth globally has been 18% a year. Finally, there’s been an underestimation of risk. With sub-prime (problems), people are starting to look at risk again.”
He likes gold stocks and believes gold can easily go to $1,000 an ounce or higher.