Market Remains Strong Despite Bad News: Strategist

Friday, 15 Jun 2007 | 9:58 AM ET

Al Goldman, chief market strategist for A.G. Edwards, told CNBC’s “Closing Bell” that the stock market’s performance has been “very impressive” despite downbeat economic news.

Afternoon Markets
A look at what's going on in the markets and a look forward to tomorrow's data, with Owen Fitzpatrick, Deutsche Bank Private Wealth Management managing director & head of U.S. equity group; Al Goldman, A.G. Edwards chief market strategist and CNBC's Dylan Ratigan

“The market has had multiple excuses to pull back, particularly after the biggest jump in the Dow this year,” Goldman said Thursday. “(We’ve had) higher interest rates and higher oil prices. Things aren’t going great in the Middle East and yet the market is up, up and away, which means there’s (cash on the sidelines) that feels like they’re missing the boat and momentum breeds momentum.”

Goldman said he believed yields on the 10-year Treasury could go as high as 5.5% without disrupting the stock market.

“These rates are still historically low,” Goldman said. “But if we got up close to 6%, we’d have a bit of a problem in the stock market, I think.”

Owen Fitzpatrick, managing director of U.S. Equity Group for Deutsche Bank Private Wealth Management, said economic growth remains strong worldwide. This benefits U.S. companies that do business overseas.

He said U.S. equities aren’t overvalued, multiples haven’t been stretched, inflation is under control and earnings growth remains strong.



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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."