Correction Is 'Not Over'—Market 'Worse Than January'
Stock pared their earlier losses Monday, but investors are continuing to worry about the European debt contagion. Richard Sparks, senior equities analyst at Schaeffer’s Investment Research, and Jack Reutemann, founder of Research Financial Strategies, offered their insights.
“The correction is not over at all; I believe we’re going down from here,” Reutemann told CNBC.
“The market is worse than it was back in January.”
Reutemann said economic factors such as unemployment, foreclosure and lack of small business lending are affecting the markets and investor confidence.
“And now the public and investors are scared to death with what they see as a continuing instability in our own U.S. market, and problems abroad in Europe, coming home to haunt us,” he said. “I think we’re headed for 900 to 950 on the S&P.”
Opposing View: 'We're Within a Bull Market'
In the meantime, Sparks expects less volatility in equities this week.
“You can’t shy away from the fact that there are significant issues in Europe…yet, we’re within a bull market and that downside shock will be solved by a continued upside move,” he said.
“We’ve been bullish since May of 2009 in regard to the market, partly because there is so much skepticism and so many people have not believed in this bull market.”
Scorecard — What They Said:
- Reutemann's Previous Appearance on CNBC (May 13, 2010)
- Sparks' Previous Appearance on CNBC (May 14, 2010)
Bulls vs Bears:
- Yoshikami: Why Stocks Likely Won't Fall 20%
- Double Dip Recession Now Guaranteed?
- Short-Term Market Bounce Coming: Chief Strategist
CNBC Data Pages:
- Cramer's 12 Stocks to Play the Recovery
Monday's Top Dow Laggards (as of this writing):
No immediate information was available for Reutemann or Sparks.
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