Inflation Unlikely This Year: Portfolio Manager
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.
“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.
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“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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No immediate information was available for Wyss or Ward.
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