Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES
See all Play-by-Play postsSee all Power Lunch posts
Text Size
Jul.12
3:07 PM ET
Thursday, 12 Jul 2007
Market's Rally May Not Be 'Sustainable': Analyst

The stock market soared Thursday on the backs of better-than-expected retail sales reports, but Thomas Atteberry, analyst and portfolio manager at First Pacific Advisors, told "Power Lunch" the rally "may not be sustainable."

Atteberry is "skeptical" about the market's rally, especially since retail sales numbers weren’t as low as people expected, despite “a lot of angst and a lot of concern about subprime lending, and the consumer in the defaults and delinquencies in real estate.”

“It’s hard for us to get excited that we think the consumer’s going to be the driver of the economy going forward,” Atteberry said.  He expects the cost of gasoline, high-levels of credit card borrowing, and falling real estate prices to take a toll on consumer spending.

Reacting to these trends, Atteberry has reduced his exposure to financial service stocks and has taken on a "large" cash position.

He's wary of financial services stocks because the sector's growth has been driven by consumer lending.

“We look for consumer lending going forward to be a much more difficult place to be,” he said.

© 2009 CNBC.com

Tools:
PrintEmailAdd This share icon


Current DateTime: 08:26:52 10 Jul 2009
LinksList Documentid: 29778428

Current DateTime: 01:04:09 10 Jul 2009
LinksList Documentid: 29779196

Current DateTime: 07:29:15 10 Jul 2009
LinksList Documentid: 29779199

Current DateTime: 01:05:34 10 Jul 2009
LinksList Documentid: 29779198
CNBCCNBC
About CNBC  |  Site Map  |  Privacy Policy  |  Terms of Service  |  Video Reprints  |  Advertise  |  Help  |  Contact
Partners: AOL Money  |  BloggingStocks.com
CNBC is a Division of NBC Universal
  Data is a real-time snapshot *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
Thomson ReutersThomson Reuters