Stocks retreated Monday as investors took a breather after a four-week rally capped by better-than-expected jobs report on Friday. But losses were pared intra-day Monday and the Dow is trading around its highest level since November. Read and listen to what the experts had to say...
V-Shaped Recovery Coming
After last week's U.S. employment numbers, Michael Browne from Sofaer Global Research said the 'V-shaped' recovery is in place. He expects "a very, very large restocking phase" taking place from now until approximately next Easter.
Expect 5-7% Pullback, Followed by Growth
“Pullback will come, and you’ll get another 5 to 7 percent,” said David Sowerby of Loomis Sayles. “In the last month, investor sentiment had gone from being unusually bearish, which is a good contrarian tailwind for the market, to now just mediocre,” he explained. However, expect more growth after the correctionin the long-term because we’ve only recovered about 38 percent of the original bear-market decline, he said.
Strong Global Economies by Early 2010
“We are quite positive on the equity markets because we have such a huge amount of liquidity being pumped into the markets,” said Laurent Millet from LV Asset Management. Expect to have strong economies worldwide, led by China and other Asian economies,in the first quarter of 2010, he added.
Will Unemployment Rate Continue to Fall?
While the unemployment number was better than expected, we still lost a quarter of a million jobs and that doesn’t help consumption or the economy overall, said Uwa Parpart of Asia Cantor Fitzgerald. “The ‘cash for clunkers’ program in the U.S. certainly added some manufacturing jobs [and] government jobs filled significant holes too,” he said. “So it means that aspects of the stimulus program are working, but these are also one-off programs.”