Skip navigation

CNBC Stock Blog

RSS FEED

» Help

Current DateTime: 03:49:00 24 Nov 2009
LinksList Documentid: 30328029
Dow Will Fall to 6,300 by Year End: Portfolio Manager
Published: Monday, 5 Oct 2009 | 6:29 PM ET
Text Size
By: JeeYeon Park
CNBC News Associate

With the prospect of higher unemployment hanging over the markets, some experts expect a correction. So are they right? Michael Cuggino, president and portfolio manager at Permanent Portfolio Funds, and John Lekas, CEO and portfolio manager at Leader Capital, shared their insights. (See their recommendations, below.)

“I think we go below the double dip,” Lekas told CNBC. “By year-end, we drop below 6,300 on the Dow and by 2011, we’re at 4,200.”

Lekas said although Monday's ISM services index was “neutral,” the unemployment number was at 785,000 last month and that number is expected to worsen.

“So 26 to 27 million people who are out of work isn’t going to help the economy,” he said. “And until that number gets better, we will not see a recovery.”

Lekas told investors to sell equities, buy short-term fixed income, stay with high quality names and stay safe.

CNBC Data Pages:

In the meantime, Cuggino said although there are risk factors and uncertainty in the markets, earnings are going to continue to improve.

“There’s also a tremendous amount of liquidity out there that will be used to prime economic growth going forward,” he said.

Cuggino recommended sticking with equities—“especially U.S. multinationals who take advantage of worldwide growth.” He also likes the financial services, biotechnology, pharmaceuticals and technology sectors.

More Market Intelligence:

______________________________
Recommendations:

Cuggino Likes:

FedEx [FDX  Loading...      ()   ]

Hewlett-Packard [HPQ  Loading...      ()   ]

Freeport-McMoRan [FCX  Loading...      ()   ]

Lekas Likes:

3-Month T-Bill

6-Month T-Bill

2-Yr T-Note

______________________________

Disclosure:

No immediate information was available for Cuggino or Lekas.

______________________________
CNBC Slideshows:

______________________________

______________________________

Disclaimer

© 2009 CNBC.com
Add This share icon
Text Size
  • digg share
ADD COMMENTS
Remaining characters


Current DateTime: 03:14:50 24 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 09:37:23 24 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 03:44:41 24 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 07:49:43 24 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters