GO
Loading...

Markets Will 'Explode Higher' Like a Rocket Ship: Strategist

Monday, 13 Sep 2010 | 1:34 PM ET

Stocks extended their gains into a third week as bank stocks soared following new global regulatory requirements. Will the rally continue? Paul Schatz, president of Heritage Capital, and Christopher Zook, chairman and CIO of CAZ Investments, shared their outlooks.

Early Tick: Markets
Stocks are higher out of the gate, with Paul Schatz, Heritage Capital, LLC.

“Short-term, markets are on solid footing—I’d liken it to a rocket ship that’s gassed up with a lot of fuel,” Schatz told CNBC.

Schatz expects markets to eventually “explode higher.”

“In the odd chance that it doesn’t [surge] with all the positive things underneath, I think it will fall 10 percent very quickly—which is not what I’m forecasting.”

Short-Term Jump?

In the meantime, Zook said markets are likely to see a short-term boost following the November elections, as some political uncertainties get cleared out.

“We can see some rally toward the end of the year,” he said. “Then, we face the economic realities of higher taxes and slower growth.”

Schatz Favors:

REITs

Consumer Staples

Treasury Bonds

Health Care & Biotech

Zook Favors:

Energy—particularly oil service and the major integrated oil companies

Health Care

______________________________
Scorecard—What They Said:

  • Schatz's Previous Appearance on CNBC (Aug. 26, 2010)
  • Zook's Previous Appearane on CNBC (Aug. 13, 2010)

______________________________
Market Views—Across the Board:

______________________________
CNBC Slideshows:

______________________________
CNBC Data Pages:

______________________________

______________________________
Monday's Dow Gainers (as of this writing):

JPMorgan Chase

Bank of America

Alcoa

American Express

Microsoft

______________________________
Disclosures:

No immediate information was available for Schatz or Zook.

______________________________

Disclaimer

  Price   Change %Change
AA
---
ALXN
---
BAC
---
JPM MLP ETN
---
MSFT
---

Featured