Stocks struggled Friday as a sharp drop in oil prices offset an improvement in consumer confidence and FedEx's raised outlook. Plus, there was some profit taking after a five-day rally, the market's longest run since November. Meanwhile, gold hit a seven-month high above $1,011 an ounce as investors were looking for a hedge against the dollar's slide. Read and listen to what the experts had to say...
Stocks Have Short-Term Upside, then Will fall 4-5%
"We feel that the market could pull back as much as 4 to 5 percenton all the levels and still remain within a neutral to bullish position," said Dodge Dorland of Landor Capital Management. “We’re not seeing much overconfidence in the markets at this point.” There is still time to profit from this bull-market-type move in the short term, he added.
September’s Upward Trend Can’t Carry On
The upward trend we've seen so far in September ... "clearly cannot carry on at this pacebecause we're going to run up against the barriers of what is fair and reasonable," said James Bevan of CCLA Investment Management.
Dollar in ‘Serious Trouble’
"The dollar looks like it's in serious trouble and I think that will only intensify. And I think this is a seminal moment for emerging market currencies," said David Bloom from HSBC. He called the dollar "a relic of history" and said "we have to break away into a new world."
M&A in the Consumer Goods Sector on the Rise
Two deal proposals cropped up in the consumer goods sector this week. "It is a sign that there is financing available in the consumer staples space," said Jon Cox from Kepler Capital Market. "You're going to see a variety of deals start to be triggeredover the coming weeks and months."
When Will Exit Strategy Be Put in Place?
A "slow, gradual" extrication from governments' stabilization policies won't "be taken too negatively by the markets," said Andy Lynch of Schroders. “But if we see a sharp move…that would be a big mistake and policy makers globally are aware of that.” He doesn't see the removal of these policies for the at least the next 12 months.
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