Markets Likely Rebounding to 'Recovery Highs': S&P's Stovall
Markets opened higher on Wednesday, after the Dow logged its best day in three months on Tuesday. Is the correction over and should investors start putting their money in stocks? Sam Stovall, chief investment strategist at Standard & Poor’s, shared his insights.
“The correction of 8.1 percent on a closing basis and 10 percent on an intraday basis is over,” Stovall told CNBC.
“We’re probably going back to the recovery highs.”
Stovall explained how the European debt crisis is affecting the U.S. dollar and what to expect going forward.
“When we had the concerns about the sovereign debt crisis…European currencies weakened in a flight to safety to the U.S,” he said.
“But by the end of this year, we’ll probably go back to the weaker dollar environment. Because of the increased debt situation in the U.S. and the lack of the willingness of the Fed to raise interest rates sooner rather than later, we’ll probably see a weaker dollar moving forward.”
- Watch Stovall's Previous Appearance on CNBC (Jan. 12, 2010)
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No immediate information was available for Stovall or his firm.