Stocks plunged Monday as investors remained concerned about the wider implications of debt burdens throughout Europe. David Katz, chief investment officer of Matrix Asset Advisors, and Michael Cuggino, president and portfolio manager at Permanent Portfolio Funds, discussed their outlooks.
“While you have a selloff today based on concerns about Europe, it is not going to derail our economy,” Katz told CNBC. “So we’d use today’s weakness as a buying opportunity.”
Katz said he is bullish on the markets and expects earnings to eventually drive stock prices higher.
“The economy is on the mend, there is no fear of a double dip and stocks are at 11.5 to 12.5 times earnings,” he said.
America's Big 'Potential':
In the meantime, Cuggino said while Europe remains weak, there’s “still a lot of potential” in the U.S. for economic growth.
“We’re waiting for a trigger event to get the animal spirits back, to get us engaging again,” he said. “We see improving fundamentals here in the States.”
Scorecard—What They Said:
- Cuggino's Previous Appearance on CNBC (Nov. 24, 2010)
- Katz's Previous Appearance on CNBC (Nov. 5, 2010)
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- Morici: Have Stocks Become a Suckers' Bet?
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CNBC Data Pages:
No immediate information was available for Cuggino or Katz.