With the Dow plunging more than 200 points on Tuesday, is this the start of the market correction that bears have been calling for?
Alan Valdes, vice president of Kabrick Trading, and Warren Meyers, chief executive of Walter J. Dowd, said the day's losses are nothing more than a kneejerk reaction to problems with the Eurozone and its single euro currency — and the US markets aren't yet due for a major downturn.
"Usually it takes a little while for people to realize...this situation going on in Europe may last for quite awhile," Meyers said. "Because of that, now maybe I better think of protecting my money that I have over there and investing it in other places."
Valdes said he is still interested in buying American equities, as a weak euro will in the end help the US. But with many major US companies citing a large amount of their sales growth coming from Europe, a strong dollar could temporarily hurt companies such as McDonald's or Caterpillar .
But Meyers agreed that if the euro continues to be put under pressure, a strong US dollar and recovering American economy will turn the US into a safe haven for investors.
"[The combination] will draw investment dollars back into this country once we get through this short-term turmoil," he said.
More Market Analysis:
- Investors Beware of 'Very Serious Long-Term Structural Issues'
- 5 US Companies That May Have Big Europe Risk
What They Said Last Time:
- Valdes' Latest Appearance on CNBC (April 9, 2010)
- Meyers' Latest Appearance on CNBC (April 15, 2010)
CNBC Data Pages:
- World's Biggest Debtor Nations
CNBC's Companies in the News:
Disclosure information was not available for Valdes, Meyers or their companies.