What should investors expect from the markets in the second half of 2009? CIOs Jack Ablin of Harris Private Bank and Maury Fertig of Relative Value Partners gave their outlooks.
“We think there’s another 10 to 15 percent upside in this market and we remain moderately constructive,” Ferting told CNBC.
Fertig said the overall improvement in the credit markets has been increasing since the beginning of the year and the percentage of cash sitting in savings markets right now is at its highest in 30 years.
In the meantime, Ablin told investors to brace for inflation.
“If you look at the growth of the economy, we’re going to have sub-par growth. It’s not going to be strong enough to create a lot of jobs, unless policymakers allow for a higher level of inflation,” he said.
“If we have higher inflation, we can create jobs. [Although] wages will not keep pace with that inflation, we can keep more people employed. So longer term, we have to position ourselves for inflation because policymakers are going to take the latter," Ablin said.
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