Stocks pared their losses on Friday after a better-than-expected consumer sentiment reading. They initially opened lower after US government reports that showed economic growth slowed in the second quarter. What does this mean for the markets going forward?
Christopher Hobart, chief executive and founder of Hobart Financial Group, and Benjamin Pace, chief investment officer of Deutsche Bank Private Wealth Management, shared their outlooks.
“While the GDP number’s obviously not good news, it was anticipated to be low,” Hobart told CNBC. “When we look at the economy, there are three Rosetta stones—GDP, money supply and unemployment—and quite frankly, everything seems just a little too unfavorable to really have anything happen.”
In the meantime, Pace said the equity markets are still looking cheap.
“We’re seeing a soft patch right now,” said Pace. “But there’s no reason to go into another recession…it’s going to be slow, but it’s going to be positive.”
Pace said investors should be overweight sectors like techs and industrials as they are likely the sectors to see employment growth on an improving economy.
Scorecard—What They Said:
- Hobart's Previous CNBC Appearance (May 27, 2010)
- Pace's Previous CNBC Appearance (Jun. 7, 2010)
Market Views—Across the Board:
CNBC Data Pages:
Friday's Top Dow Laggards (as of this writing):
No immediate information was available for Hobart or Pace.