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Inflation Unlikely This Year: Portfolio Manager

Monday, 5 Apr 2010 | 11:37 AM ET

President Obama said Friday’s positive employment report indicates that the worst of the recession is over. What is the economic outlook going forward? David Wyss, chief economist at Standard & Poor’s, and Howard Ward, portfolio manager at Gamco Growth Fund, shared their insights.

Markets Headed Back to Work
Discussing whether a jobs rally is in the cards today, with Howard Ward, of the GAMCO Growth Fund, and David Wyss, of Standard & Poor's.

“The worst has been behind us for a while—if you take out construction, we’ve been up three months in a row and three out of the last five months,” Wyss told CNBC.

“It’s a slow recovery, but it’s a recovery.”

Wyss said based on the employment number, he expects the Fed to tighten rates.

“But given the inflation numbers, I don’t think it’s going to be all that quick,” he said.

In the meantime, Ward said he is a “nervous bull”—and stays fully invested.

“I want to hitch to some of the commodity trade and I like some of the commodities that have been laggards, like natural gas,” he said.

  • Natural Gas Futures Now

“If the consumer starts to participate in a bigger way in this economy—which has to happen to sustain this recovery—then that velocity of money picks up and we start to think of inflation as a bigger problem down the road, but it’s not likely to happen this year,” Ward added.

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CNBC Data Pages:

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CNBC Slideshows:

  • Cramer's 12 Stocks to Play the Recovery

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Today's Dow Leaders (as of this writing):

Caterpillar

General Electric*

IBM

Intel

United Technologies

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Disclosures:

No immediate information was available for Wyss or Ward.

*GE is the parent company of CNBC and CNBC.com.

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Disclaimer

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CAT
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GE
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IBM
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INTC
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UTX
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