After two weeks of market gains, investors pulled the reins this week as confidence in the recovery began to falter. What should investors expect from stocks and bonds next week? Todd Colvin, vice president at MF Global, and Robert Heller, managing director at Chapdelaine Brokerage, shared their insights.
“Some bigger factors about the stock markets is in a lot of uncertainty over re-regulating the banks and the financial system,” Heller told CNBC.
“And the big thing that looms over everybody’s head is Greece, the sovereign debt and if you look into [the U.S.], some of the states are in trouble in terms of how much money they have.”
In the meantime, Colvin said investors should focus on the employment data next week.
“The bond market seems to be pricing in that it’s a little weaker than some have anticipated at this time,” he said. “With sovereign debt issues, what’s going on in Washington and the Fed…we should anticipate a lot of volatility next week in the bond market.”
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No immediate information was available for Colvin or Heller.