Correction Has Already Begun: Portfolio Manager
Stocks opened lower on Tuesday on China's bank-loan tightening, but a report of rising confidence helped take the edge off. Are the markets already in a correction? David Goerz, chief investment officer at Highmark Capital, and Sarat Sethi, partner and portfolio manager at Douglas C. Lane & Associates, shared their market outlooks.
“Once we get to the end of this week, we’re probably looking at 4 to 5 percent GDP report for the fourth quarter,” Goerz told CNBC.
“As we look forward, we think it should be about earnings…We think it is a very strong backdrop for U.S. growth during 2010 going into 2011.”
Goerz said investors should not worry about a W-shape recovery.
“As we come out of this, there will be political risk, but we’re probably are in a gridlock between here and November for now,” he said. “There will be some volatility, but we want our customers to re-engage with the stock market.”
In the meantime, Sethi said markets are in the middle of a correcting period.
“Over the next couple of month, the markets aren’t going to go anywhere,” he said. He counseled patience: “Within the market is where you have the opportunities.”
More Market Views:
- Market Crash if US Policies Continue: Dick Bove
- 20% to 25% Correction by May: Market Analyst
- 2 Winning Sectors Resist 'Turbulent' Market: Strategist
CNBC Data Pages:
Cramer's 12 Stocks to Play the Recovery
CNBC's Companies in the News:
Bank of New York
BNY Mellon CEO: US Needs 'Systemic Risk' Council
Warren Buffett Builds $1 Billion Stake in Munich Re
Toyota Sees 2010 Sales Up 6%; to Keep No.1 Spot
Novo Nordisk Hits High as FDA OKs Diabetes Drug
No immediate information was available for Goerz or Sethi.