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Pros Say: Recession Will End in 1-2 Quarters

Published: Tuesday, 21 Jul 2009 | 1:11 PM ET

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By: JeeYeon Park
CNBC News Associate

The Dow advanced Tuesday before dropping back, as a slew of components beat earnings expectations. But there were pockets of weakness throughout the market, including chips, hardware, banks and retail. Between the double-decker day of earnings, Fed Chairman Bernanke is delivering his semi-annual testimony on the state of the economy before the House, which he will repeat tomorrow morning before the Senate.

Recession Will End in 1-2 Quarters

Tim Courtney of Burns Advisory Group said earnings are not where the market needs them to be. “Over the next 2 to 5 years, the earnings and revenues will go up,” he said. “We are in a recovery right now and the market is following a pattern that we’ve seen in previous market recoveries…The recession will end in 1 to 2 quarters.”

Art Cashin: What's Driving the Market Now

The Fed’s Exit Strategy

The Federal Reserve has to have an exit strategy, said former Fed Board Governor Frederic Mishkin. “The economy is at a cross-roads…One is the whole issue of Federal Reserve independence, which, if we do not preserve it in an appropriate way, actually means we could go back to an inflationary environment,” he said.

Bernanke Says Fed Can Take on Supercop Role

Betting on Absolute Return

There is growing interest in absolute return investment funds as people look ahead toward retirement, said Jonathan Fry of Jonathan Fry & Co. “Just taking directional bets on where the market’s going with a relative return fund doesn’t necessarily meet the goals we’re aiming for — and losing 20 to 30 percent just before you retire is a problem,” he said.

Taxpayers on the Line for TARP

“One of the main focuses of this report is transparency and we see failure on Treasury for acquiring the right amount of transparency throughout the TARP program,” said Neil Barofsky, special inspector general for the TARP program. He will give Congress his quarterly status report on the usage of the funds Tuesday afternoon.

TARP Debate: How Much Money Is It — Really?

Better Late Than Never

“Investors should have gotten into the stock market 9 months ago,” but there is still logic to buying in now, said Peter Toogood from Old Broad Street Research.

Cramer: Why You Should Buy Stocks Now

Trust in Washington Weakens

A new survey shows the public is losing some trust in Washington and gaining trust in Wall Street, said Dan Bartlett, of Public Strategies. Trust in Obama to solve the nation’s problems has slipped, he said. “It’s a worrisome sign for this administration who’s pushing for such aggressive government intervention.”

Obama: US Can't Afford to Delay Healthcare Reform

The Race to Space

Monday marked the 40th anniversary of Apollo 11 landing on the moon. The Apollo 11 team suggested now is the time for there to be a first human landing on Mars. Space historian Dr. Chris Riley discusses who may be next in the race to space.

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