This rally has been getting no respect from investors since the March lows of last year, said Ken Kamen, president of Mercadien Capital.
“Everyone’s been focusing on what the interest rates are going to be and what the Fed’s going to do,” Kamen told CNBC.
“But the real issue, as [Fed Chairman Ben] Bernanke was saying yesterday, is deficit spending.”
Kamen said solving the deficit problem would be the most “stimulative thing that can happen” for the markets and the "healthiest thing" for the economy.
“If we can get that in control, we could be in great shape,” he said.
Kamen commented on the Dow level, which has been trading near to the 11,000 mark in the last few weeks.
“There’s no doubt we’re going to get there—but the numbers are just statistical anomalies,” he said. “The danger about a round number is that it’s [perceived as] some sort of milestone—and maybe it’s a good thing that the market’s not pumping through it so quickly.”
- Watch Kamen's Previous Appearance on CNBC (Nov. 12, 2009)
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Top Dow Gainers (as of this writing):
McDonald's
AT&T
Microsoft
American Express
Merck
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Disclosures:
No immediate information was available for Kamen or his firm.
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