Markets Will Rise 8-9% by Year-End: Strategist
Stocks rose after a rocky open on Friday as investors prepared for the "quadruple witching" expiration of futures and options. Alec Young, equity strategist at Standard & Poor’s, and Fritz Meyer, senior market strategist at Invesco, shared their market outlooks.
“I think the 15 percent correction is probably over,” Meyer told CNBC.
“I do believe that by the end of the year, we’ll see higher stock prices—1,200 to 1,250 on the S&P by the year-end makes a lot of sense, which is 8 to 9 percent from here.”
In the meantime, Young said the markets are calming, as issues in Europe and China are stabilizing.
“But the problem is that the 10-year bond yield isn’t corroborating the stock market’s confidence,” he said. “Bond traders are much less confident about the recovery and historically, the bond market is a better forecaster than the stock market.”
Young told investors to expect a choppy market over the summer.
“We need to put some of these economic worries to rest here in the U.S and I think you can make a case that it’s going to be tough to do…I think the bigger risk is more at home right now.”
Scorecard—What They Said:
- Meyer's Previous Appearance on CNBC (June 11, 2010)
- Young's Previous Appearance on CNBC (June 10, 2010)
Opposing Market Views:
- 'Serious Market Problems' in the Fall—Gold to Hit $2500: Pro
- Markets Can Test May Lows 'Later in Summer'
- Earnings Will Drive S&P to 1150-1170 by July: Strategist
CNBC Data Pages:
Top Dow Gainers (as of this writing):
No immediate information was available for Meyer or Young.