There won’t be a double dip although markets will continue to stay volatile, said Matt McCormick, banking analyst and portfolio manager at Bahl & Gaynor Investment Counsel.
“When you see tax increases going up across the board next year, that will crimp the consumer and that’s not going to be accretive to spending, consuming and ultimately earnings,” McCormick told CNBC.
“There’s going to be more volatility, earnings are going to be more difficult to attain," he said.
"And in that type of circumstance, you’re not going to see a double-dip—but it’s going to feel like it as the market becomes more volatile.”
Earnings expectations need to be lowered and be more manageable, McCormick added.
“If you look at the S&P earnings for next year, most people expect $99, which means that would be the best market ever since 2006," he explained. "So people are a little ahead of themselves.”
Scorecard—What He Said:
- McCormick's Previous Appearance on CNBC (May 21, 2010)
Pros on Double Dip:
- Housing Double-Dip to Slow Economic Recovery: Whitney
- 'Fast Money' Traders: Dividend Increases Signal No Double-Dip
CNBC Data Pages:
CNBC's Companies in the News:
- BP Boss Retreats From Spill; Shares Hit 13-year Low
- Ex-Citigroup Trader Raises $1 Billion for Hedge Fund
Intel and FTC Talk Settlement of Market Abuse Suit
No immediate information was available for McCormick or his firm.