S&P Could Reach 1,001: Strategist
Stocks rallied Thursday, pushing the Dow to its highest level since November, but will the rally continue from this point?
Douglas Roberts, founder and chief investment strategist at Channel Capital Research.com, told investors that the uptick will continue.
This rally "is like when you pull a beach ball down far enough below the water, you’re going to have a fairly violent uptick as it pops to the surface and that’s what we’re experiencing now,” Roberts told CNBC.
“I think it’s going to continue for a while.”
Roberts said the S&P could move up to 1,001 on earnings and expectations.
“The market seems to be accepting cost cuts as a valid way of dealing with earnings growth,” he said.
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“They’re dismissing the revenue growth aspect for the future. As a result of that, if you don’t have any economic landmines, you’ll have back and forth but as long as there’s nothing major, you’re going to continue to drift up.”
However, he warned that after the earnings season, things will start to look “glum” until the employment situation starts to stabilize.
It’s going to be “very difficult to maintain anything more than the 1,000 to 1,100 range,” Roberts said.
No immediate information was available for Roberts or his firm.
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