CNBC Stock Blog
- Why You Should Play the Reflation Trade: Stock Picker
- S&P to Hit 1,200 by Year-End: Chief Investor
- 5 Big Bank Stocks Investors Should Consider: Strategists
- My 2010 Home Price Outlook: UBS Analyst
- Why Are Options Piling into Dollar Tree?
- Markets Can Rise 5-10% in the Near-Term: Strategist
- Buy These 'Competitively Positioned' Stocks: Portfolio Manager
- 5 Stocks That Benefit from Health Care Legislation: Analysts
- 9 Stocks That Play Rising Water Costs: Strategists
- Gold Prices Can Double in 3 Years: Portfolio Manager
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Amended Berkshire Hathaway Filing Indicates No Secret Stock Stakes at End of Q3
- CNBC Anchor Takes a Sabbatical
- Privately Held Facebook Creates Dual-Class Stock
- NBA D-League On The Rise
- On Twitter, Beware False Prophets
- Boeing, Duke Energy Win Smart Grid Stimulus Grants
- Is Genius Contagious?
- Citi Mortgage Reveals What Treasury Won't
- Nov. 24: Unusual Volume Leaders
- Citi Mortgage Reveals What Treasury Won't
- S&P to Hit 1,200 by Year-End: Chief Investor
- Amended Berkshire Hathaway Filing Indicates No Secret Stock Stakes at End of Q3
- Facebook's Biggest-Ever Holiday Shopping Season
- Facebook's New Dual Class Structure - Slow Steps to an IPO
- 5 Big Bank Stocks Investors Should Consider: Strategists
- Gambling Drunk, Texting to Live And America's On Sale - Your Emails
- Nov. 24: Unusual Volume Leaders
- NBA D-League On The Rise
- Call Me Crazy: Confessions of a Black Friday Shopper
- US Firms Hit by Payroll Taxes at Exactly the Wrong Time
- Citi Mortgage Reveals Something the US Treasury Won't
- Fed Sanguine About US Recovery, Worried on Jobs
- Amended Berkshire Filing Reveals No 'Secret' Holdings
- In Time for Holidays: More Gloom and Doom on Economy
- Market Pros Reveal Top Black Friday Trades
- Holiday Guide to This Season's Smartphones
- Turkey Day 101: How Well Do You Know Your Bird?
RSS FEED
Text Size 
CNBC News Associate
Stocks enjoyed a big gain on Thursday on a stronger-than-expected GDP report. But will it be enough to kick-start another sustained rally? Andrew Kanaly, chairman of Kanaly Trust Company and Paul Schatz, president of Heritage Capital discussed their outlooks.
 |
“[By] GDP data alone, absolutely not,” Schatz told CNBC. “We all know [the GDP gain] was baked in with free money and government money and not 'real money.'”
Schatz said the markets are in the middle of a correction, which will wrap up during Thanksgiving or in early December before riding another rally into next year.
“But it’s not based on GDP,” he said. “[The correction] will be the largest decline since the bull run began in March—somewhere between 7 to 17 percent total from the peak, but then we’re going to see new highs again during the first quarter of 2010.”
Schatz said he doesn’t see the Federal Reserve making any movements in the foreseeable future.
“Very slowly, they’re going to start putting the hints out—the economy’s getting better—which I don’t believe, but that will add strength to the dollar,” he said.
But, Schatz added, “If the Fed is going to keep the pedal down and flooding the system with cash, stocks are going to go up—the Dow is going to go far above 10,500—11,000 in the first and second quarters next year.”
In the meantime, Kanaly told investors that the economy’s “seen the best of the GDP news for a while.”
 |
“It looks like everything’s going to slow down from this furious pace we saw in the third quarter—the dollar’s strong and everything else is weak—I’m not sure your stock market is going to like that very much,” he said.
Kanaly said he is keeping his bond holdings “very short-term.”
“We have been buyers of gold, but now we’re concerned that it’s gone too far too fast because it’s not inflation-driven, it’s a currency play. At some point, that’s going to go away,” he said.
Kanaly Likes:
MSCI Emerging Markets
S&P Technology
S&P Materials
S&P Energy
Schatz Likes:
S&P Consumer Staples
S&P Tele Svs Grp
CNBC Data Pages:
______________________________
CNBC Slideshows:
______________________________
______________________________
Top Technology Companies:
Microsoft [MSFT
Loading...
()
]
Apple [AAPL
Loading...
()
]
Google [GOOG
Loading...
()
]
______________________________
Disclosures:
No immediate information was available for Kanaly or Schatz.
______________________________
Data is a real-time snapshot *Data is delayed at least 15 minutes