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False Double-Dip Ahead: Portfolio Manager

Even though a double dip is unlikely, it might feel like one because the market will stay volatile, Matt McCormick, portfolio manager for Bahl & Gaynor Investment Counsel, told CNBC Tuesday.

“I think that there’s going to be more volatility, not less. I think earnings growth is going to be more difficult to obtain, not less. And I think in that type of circumstance, I don’t think you’re going to see a double dip but I think it’s going to in a sense feel like it,” McCormick said.

McCormick said a double dip isn’t inevitable. Meredith Whitney, from Meredith Whitney advisory group, told CNBC Monday that economic growth will slow down following a double-dip in the housing sector.

However, he doesn’t think the S&P earnings for 2011 will be as high as most investors in the market expect.

Watch the full interview with Matt McCormick, portfolio manager for Bahl & Gaynor Investment Counsel.

“I think people are a little ahead of themselves. I think if you look at that circumstance, with earnings are going to be a little bit lower, I think expectations should be a little bit managed,” McCormick said.

Tax increases in the US and austerity worldwide will affect consumer confidence and there will be slower GDP growth than people are expecting, McCormick said.

Investors should focus on companies that have consistent profits and earnings, which will prosper regardless of the economy, he added.

Contact Europe: Economy

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