Stocks Are 'Extremely Cheap' Right Now: Strategist
Stocks were lower on Tuesday as another batch of earnings reports showed weak revenues and more signs of a struggling housing market appeared. Neil Hennessy, portfolio manager and CIO of Hennessy Funds, and David Goerz, CIO of Highmark Capital, shared their market insights.
“People just lost complete hope and perception of what’s happening out there,” Hennessy told CNBC. “People forget that things aren’t as bad as we perceive them to be.”
In the meantime, Goerz said while the economy is in “great shape,” weak consumer confidence continues to weigh on investors.
“We’ve got very strong exports, so business confidence is okay [but] investor sentiment has become a real-time indicator of how people think they ought to perceive the economy,” he said.
“We think stocks are extremely cheap at 12 times earnings—we’re going to get 35 percent earnings growth this year.”
Investment Recommendations—Goerz Likes:
Scorecard—What They Said:
- Goerz's Previous CNBC Appearance (Apr. 27, 2010)
- Hennessy's Previous CNBC Appearance (Jul. 9, 2010)
Market Views—Across the Board:
CNBC Data Pages:
Major Earnings Coming Up:
No immediate information was available for Goerz or Hennessy.