Stocks kicked off August with a rally after another round of encouraging earnings reports and a better-than-expected reading on manufacturing. Brian Gendreau, market strategist at Financial Network Investment, and Larry Rosenthal, president of Financial Planning Services, discussed their insights.
“Over the next few months, I see slow-to-moderate growth happening,” Rosenthal told CNBC.
“True economic data is going to come out this Friday with the jobs number, as to where the market and the economy is going, going forward.”
Rosenthal said he sees opportunities in the emerging markets, especially in Asia, with the rising middle class.
'Pretty Good' Europe News?
In the meantime, Gendreau said he expects the markets to trend sideways before ending higher by year-end.
“We had some heartening news and we’ve been having pretty good news out of Europe,” he said.
“There were concerns that the debt crisis was going to morph into a global credit crisis, but that doesn’t look like it’s going to happen and part of the market reaction we’re seeing over the past few weeks is due to that realization.”
Gendreau said he is also in favor of the emerging markets, particularly infrastructure.
“There are also those US companies that are most internationally oriented,” he said. “So I like the industries that support global growth: technology, materials and the infrastructure-oriented industrials.”
Scorecards—What They Said:
- Gendreau's Previous CNBC Appearance (Jul. 16, 2010)
- Rosenthal's Previous CNBC Appearance (May 17, 2010)
More Market Intelligence:
- Markets Likely to Be Higher in August: BlackRock's Doll
- Equity Markets Are Still Looking Cheap: CIO
- Low Trading Volume Indicates Fragile Recovery: Pro
CNBC Data Pages:
Monday's Top Dow Gainers (as of this writing):
No immediate information was available for Gendreau or Rosenthal.