Stocks continued to tumble Tuesday, following news that existing home sales were worse than expected, in addition to tensions between North and South Korea. David Kotok, chairman and chief investment officer of Cumberland Advisors and a CNBC contributor, shared his market outlook.
“This is a slow, steady recovery and it’s going to take time,” Kotok told CNBC.
“You saw it today in the housing numbers—the housing situation is not stable.”
The unemployment rate is also looking grim, added Kotok.
“This is very slow and even if we get some recovery, it doesn’t feel good—and it’s not going to feel good for a while and that’s what we have to confront,” he said.
“Homes are the most pervasive asset in the U.S., and at the peak, it was worth $10 trillion more than the stock market was at its peak,” explained Kotok. “And you now took 65 million households and reduced their most important asset—and not only that, you have infected them with an attitude that it’s not going to go up. What they’re hoping for is a stabilization.”
Scorecard—What He Said:
- Kotok's Previous Appearance on CNBC (Nov. 11, 2010)
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- US Economy Is Close to Seeing 'Trend Growth': Pro
- More Volatility Ahead, but You Can Invest Here: Pros
CNBC Data Pages:
Tuesday's Top Dow Laggards (as of this writing):
No immediate information was available for Kotok or his firm.