Approximately 35 percent of S&P companies having reported so far. What do the results tell us for stocks going ahead? Neil Hennessy, portfolio manager and CIO of Hennessy Funds, and Steven Stahler, president of Stahler Investment Group, shared their market outlooks.
“The markets have gotten ahead of the economy quite a bit,” Stahler told CNBC.
“And if we consider the news coming out today and through this earnings period as good news, I don’t think the targets were set high enough to make it such great news.”
Stahler expects the Dow to cross the 10,000 mark several times by the end of the year.
"I just don’t see any really great news—it’s all incremental better news than the worse news that we had."
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Stahler advised investors not to trade into the market and said he is attracted to the BRICs (Brazil, Russia, India, China).
“They’re working together and setting some policies,” he said. “And I think that’s a place to go for some time. They’ll own half the world’s economy in the next 10 years.”
On the other hand, Hennessy said markets are in a 10-year bull run. “We’re in for a really good run, particularly looking at pessimism out there by the investor,” he said.
“If I’m going to be investing in the long term, you have to look at the low-end retailers or the low-end manufacturers of whatever they are manufacturing,” he said.
“I don’t think people are going to go back and change spending habits to the high end any more. I think people are going to go for more for less and that will go for the next 10 years.”
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No immediate information was available for Hennessy or Stahler. ______________________________