Stocks fell sharply on Thursday as the Fed's lowered outlook and disappointing economic data rattled investors, who had been recently feeling optimistic. Initial jobless claims dropped by 12,000 to a seasonally adjusted 631,000 last week, slightly higher than expected, and continuing claims surged to another record. Experts weighed in on these topics and more. Read and listen to what they had to say...
Equity Markets to Continually Improve
The equity markets are going to continually improve over the next 9 months, said Randy Bateman of Huntington Situs Trust. “There’s an awful lot of money still sitting on the sidelines and it’s got to go somewhere ultimately,” he said.
‘A 10-15% Pullback’
Subodh Kumar of Subodh Kumar and Associates said capital markets are thawing out — but he expects a 10 to 15 percent correction in the nearer term. “The market has already incorporated 2009 earnings, so I suggest that money on the sideline can wait a little bit because the pullbacks are unfolding,” he said.
Spring & Green Shoots on Wall Street
“It’s spring on Wall Street—we’re seeing green shoots not only in the U.S. economy but globally,” said James Paulsen of Wells Capital Management. Pessimistic investors are still helping to balance out markets, he said. “When we get the S&P over 1,000—that’s when we’ll get a lot more converts to the party,” he said.
Central Banks to Become More Aggressive
Anthony Chan of JPMorgan’s Private Wealth Management said he sees both the credit and economic crises improving. However, he still expects central banks to become more aggressive in the coming months, to make sure that the risks are mitigated.
Falling Dollar a ‘Perfect Scenario’ For...
Tim Rocks of Macquaire Securities said the falling U.S. dollar is “the perfect scenario for Asian asset prices, equities and property.” As a result, he said Asian asset prices will be pushed up “very aggressively.”Oil Uptrend to Continue Temporarily
The crude oil uptrend will likely continue for a few more daysbefore weakening in the coming weeks, said Victor Shum of Purvin & Gertz. He said oil fundamentals will re-exert themselves at some point, which will cause the pricing to soften.
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