How are events in Washington affecting the markets and Wall Street? Bruce Kasman, chief U.S. economist at JPMorgan, and Erik Ogard, director at Russell Investment Group, shared their insights.
“We have more fear and psychology driving things right now than actual earnings,” Ogard told CNBC.
“If you look at the earnings picture, it’s very favorable.”
Ogard believes earnings are going to be up this year compared to last year — and will eventually drive the markets.
He praised Federal Reserve chief Ben Bernanke as "a fine chairman."
"He’s done a wonderful job and he doesn’t get the credit he deserves for orchestrating a wonderful policy initiative to save the economy and the markets,” Ogard said.
In the meantime, Kasman agreed that earnings are going to be stronger this year, and said the current Fed funds rate is building support for the markets.
“The key question is whether the private sector can get enough lift over the next 6 to 12 months,” he said. “I think that’s likely to happen — and the earnings story is going to be a big part of it.”
Point/Counterpoint - Obama, Fed & Markets:
- Cramer: Bernanke Is Doing 'Everything Right'
- Washington Is Worst Threat to Markets: Kotok
- Pimco's Gross: Fed Focus Will Be Quantitative Easing
CNBC Data Pages:
CNBC's Companies in the News:
- Ford Posts First Full-Year Net Profit Since 2005
- Kodak Results Boosted by Licensing; Shares Soar
No immediate information was available for Kasman or Ogard.