Dow Ready for Late-80s 'Flash Fire' Rally: Strategist
The battered stock market is due for a “flash-fire” rally which could match the stellar recovery-run put in place after the crash of 1987 finally bottomed, Bill Spiropoulos, market strategist from CoreStates Capital Advisors, told CNBC.
“There are tremendous opportunities and there’ll be fabulous returns for those that have the will,” Spiropoulos said.
“Some of the cheapest (stocks) in the world are the US large-cap consumer (stocks), right here in the states and that’s exactly where I would start on the buy side,” he added.
The wave of government money currently working its way into the financial system will help to boost the stock market, but a return of confidence will be the key driver, Spiropoulos said.
“When the central banks get together and lean shoulder to shoulder, I’m not betting against them, you’d have to be out of your mind,” he said.
The crash of 1987 saw all the major markets “shivering with freight” in the following months, he said.
But when they finally got a footing some indexes made gains in the region of 80 percent “without so much as a 10 percent correction,” Spiropoulos said.
“The markets are trying to put in a very important bottom, I think that we’ve probably seen the lows and whether or not they are violated marginally is really not the issue here,” he said.
Spiropoulos described the current state of investors as “chickens and thumb suckers,” but urged confidence as “prices are compelling; there’s change at the doorstep.”
Watch the full Bill Spiropoulos interview above.
For the Investor: