Market Has Much Higher to Go: Strategist
The Dow 10,000 mark is very much in sight, so what does that mean for investors? Hugh Johnson, of Johnson Illington Advisors, and Emmanuel Ferreira, of the Oppenheimer Quest Opportunity Fund, shared their opposing market views with CNBC on Wednesday.
"I don't know when we'll get there (Dow 10,000), we may not get there right away," said Hugh Johnson. "I just know that the principal trend in prices says this is the early stages of a bull market and we have much higher to go."
But Emmanuel Ferreira took a much more cautious approach to the current market.
"What's really happening is that easy money and a weak dollar are driving up the bid for risk assets," said Ferreira. "The problem is that while the prices are going up, the fundamental risk of those assets hasn't really changed. That's how you end up with asset bubbles."
"The key thing for investors is to invest on fundamentals", said Ferreira. "When you are just looking at price action and momentum, you are really speculating that the trend continues."
"The good news of the economy and earnings, will at this level, certainly outway the bad news of rising inflation and interest rates," said Johnson.
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Disclosure information was not available for Johnson or Ferreira.