S&P to Hit 1250 Before 'Big Decline': Pro
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)
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- Dollar Rally Won't Last Long: Pros
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Tepper’s firm, Strategic Wealth Partners owns shares of UUP.
No immediate information was available for Rubino or his firm.