Markets Headed for 'Messy' Summer—And Then Strong Rally
With the Dow Jones Industrial Average posting its worst May since 1940, where will the stock market head for the rest of the year?
Steven Stahler, president of Stahler Investment Group, and Harry Clark, president and chief executive of Clark Capital Management, shared their insights with CNBC.
Stahler said severe stock market volatility may continue through November, until the private sector starts adding more jobs.
"We've politicized everything from blue sky to junk food," he said. "I think any of the good news that we see, and the small pieces of good news, is not going to be enough to overcome this feeling [of uncertainty] that the investing public has."
Clark also expects the market to move sideways in what will be a "messy, messy volatile" summer, by first experiencing a rally, and then retesting a bottom near 1040 on the S&P 500. He then expects a strong rally to carry the markets through the fall and winter, and into 2011.
He pointed to historical data showing that whenever the month of May is down by 5 percent or more, the next three months average 12.5 percent higher.
"We'll hit a bottom come September-October that'll take off like a shot," he said. "We're going higher."
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Disclosures:
Disclosure information was not available for Stahler, Clark or their companies.
