Recent economic numbers suggest that the economy may be finally turning to a recovery, said Jim Hardesty, president, market strategist and chief economist of Hardesty Capital Management, and John Merrill, founder and CIO of Tanglewood Wealth Management.
“The economic news is strengthening every day and the concerns for double-dip recession are ill-advised at this moment,” Hardesty told CNBC.
“I think we’re seeing the economy turn rather sharply.”
Hardesty said data from the housing market is a major piece of evidence of an economic recovery. Additionally, he told investors that the inventory rebuilding cycle will stimulate the balance of 2009 and 2010.
Merrill said he expects better than expected numbers to come out of the economy, banking, and corporate earnings in 2009.
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“I look at leading economic indicators which are amazingly strong and strong as they’ve been since 1982—that pertains well for the economic news coming this fall,” Merrill said.
“That means revenue growth could be what fuels corporate earnings growth, not just cost cutting.”
However, he said there’s still plenty of money still sitting on the sidelines to enter the markets.
“In the 22 weeks of positive money moving back into equities, [there's] only a fraction of what moved out during the bear market,” he said.
“$160 billion net came out of domestic equity through February this year and only $27 billion has gone back in through the end of July. $94 billion came out of international equity funds and only $13 billion has gone back in.”
No immediate information was available for Hardesty or Merrill.
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