Stocks Will Hit New Highs by Summer: Trader
The economic recovery and improving employment picture in the U.S. will help to boost stocks and the market will push to new highs by the summer, Piers Curran, head of trading at Amplify Trading, told CNBC Monday.
"I don't think the risk trade is necessarily off the table, I still think by the summer we'll be making new highs on the stock markets," Curran said.
"The fundamentals are suggesting the economy is still recovering… I just think it's going to take a bit longer than we thought," he added.
- Watch the full interview with Piers Curran and Ralph Silva from SRN above.
The U.S. will start to see a sustained recovery in employment from February, reversing the sharp rise in jobless numbers since the recession took hold, he said. Manufacturing will be one of the key sectors of the economy that leads the recovery, according to Curran.
"Job creation will … build throughout the year and I think that will be the underlying driving force for taking the economy to the next stage," he said.
The dollar is likely to continue gaining compared to other major currencies, partly because of a flight to quality and partly because the U.S. is outperforming other developed nations in Europe, Curran added.
Charlie Morris, head of absolute return from HSBC Global Asset Management, is also positive on stocks, but only "high-quality stocks."
A high-quality stock has a robust business franchise, which "you know is going to be around years from now," according to Morris.
"You want to be fairly neutral. We don't like government bonds, we do like high-quality equities and above all we love gold," Morris added.