Stocks tumbled Tuesday following disappointing news on the housing frontand continuing concerns about the debt crisis in Europe. Mark Tepper, managing partner and co-founder of Strategic Wealth Partners, and Mike Rubino, chief executive of Rubino Financial, shared their insights.
“Although the market is a little weak, it's in a bottoming-out process technically,” Rubino told CNBC.
“We’ll get a bounce up to 1,250 [on the S&P 500] before we really have the big decline that we’ve been expecting for some time.”
Rubino said he likes the dollar long-term, and advised equity investors to stay on the sideline.
“There’s going to be a great trade in the long bond if yields get up to 3 percent, because the economy is still weak—we don’t see any positive going long-term at all.”
In the meantime, Tepper agreed: he is also bullish on the dollar, but bearish on stocks.
“Volatility is high—the VIXis up about 20 percent over the course of past five trading sessions,” he said. “The bulls to bears ratio is just way too bullish right now and that’s a contrarian indicator.”
“We’re seeing the initial levels of support for the S&P at 1,173and it did a good job bouncing off that yesterday, but should it fall through 1,173, there’s no further support until about 1,130,” he added.
Tepper said his best investment idea is being long the dollar and suggested investors get exposure through UUP , a dollar ETF.
______________________________
Scorecard—What They Said:
- Rubino's Previous Appearance on CNBC (Oct. 4, 2010)
- Tepper's Previous Appearance on CNBC (Nov. 2, 2010)
______________________________
More Market Analysis:
- Dennis Gartman: 'Eventually, the Euro Breaks Apart'
- Dollar Rally Won't Last Long: Pros
- Charts Show the Euro Won't Break Up
______________________________
CNBC Data Pages:
______________________________
CNBC Slideshows—Money & Media:
______________________________
______________________________
CNBC's Companies in the News:
Lowe's
- Lowe's Backs Estimates, To Unveil New Growth Plans
Merck
- Merck Elevates Frazier to Succeed Clark as CEO
Wal-Mart
- Wal-Mart in Japan Insider Trading Probe: Report
______________________________
Disclosures:
Tepper’s firm, Strategic Wealth Partners owns shares of UUP.
No immediate information was available for Rubino or his firm.
______________________________
