Double-Dip or Recovery? What the Pros Say
Friday markets ended with a precipitous selloff that made for the worst May since 1962 and worst month in general since November 2008.
Are US markets headed for recovery, or is a double-dip in the works? CNBC heard from expert economists, strategists and investors. See what they had to say...and decide for yourself.
The Bears' Perspective:
Stocks to Fall Another 20%
"There are some parts of the global economy that are now at the risk of a double-dip recession."
"...From here on I see things getting worse."
-- Nouriel Roubini, chairman, Roubini Global Economics
(In 2006 Roubini predicted the upcoming housing bust and ensuing financial crisis.)
Governments Churning Out Money
"News indicates that downside risks to the economy are growing.”
“The news is not just sentiment. Sentiment is reflecting that the market is finally starting to differentiate sovereign bonds, currencies, equities.”
The recent "fear and anxiety among investors has started to trickle into the real economy."
-- Kevin Gaynor, head of economic and rates research at the Royal Bank of Scotland
Double Dip Recession Now Assured?
"It is tempting to dismiss distress in those markets that are far removed from the productive sectors of the economy as having little bearing on prospects for GDP growth."
"We ourselves were, to a large degree, guilty of assuming that in 2007."
-- Monument Securities Chief Economist Stephen Lewis
The Bulls' Perspective:
Gains for 'Another Couple of Years'
“What we’ve seen over the last few weeks is a routine pullback within the ongoing bull market."
"...After some additional consolidation, I think we’re likely to see higher prices.”
-- Puru Saxena, CEO of Puru Saxena Wealth Management
'10 Reasons' for a Rebound
“This is no different from what we saw in January, when we saw a 8 to 10 percent pullback—it’s fundamentally the same and we’re seeing some of the same technical patterns play out as well.”
"In four to six weeks from now, stocks will be up and headed back near April highs."
-- Jeffrey Kleintop, chief market strategist at LPL Financial
