Markets Can Test May Lows 'Later in Summer'
The Dow erased its gains after a higher open on Thursday as another rise in jobless claims weighed on the market. Maury Fertig, chief investment officer at Relative Value Partners, and Chip Cobb, senior vice president at Bryn Mawr Trust, discussed their outlooks.
“Unfortunately, we’re stuck in a trading range and I think we’re going to be here for a while,” Cobb told CNBC. “Primarily, there’s a lot of pressure that we’re dealing with and most of it is headline risk.”
In the meantime, Fertig also cautioned investors about a short-term pullback.
“There’s a good chance that we’re going to test the May lows at sometime later in the summer, but if you look out into the year-end, I think we’ll be 5 to 10 percent higher,” he said. “Valuation in this market is extremely attractive based on earnings.”
“We will have concerns such as this uneven economic recovery and the news out of Europe, but I will use those as buying opportunities,” he said.
Industrials: 3M , Caterpillar
Discounted closed-end funds: Legg Mason Capital & Income Royce Value Trust
Scorecard—What He Said:
- Fertig's Previous Appearance on CNBC (Apr. 26, 2010)
Opposing Market Views:
- Stocks Are 'Still Pretty Cheap'—and Economy Will Lift them
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- FedEx Outlook a Bad Omen?
- Big Bank Estimates Coming Down 10% - Report
CNBC Data Pages:
No immediate information was available for Cobb or Fertig.