Stock sold off sharply Mondayamid renewed fears over a Greek default. With major indexes, oil and gold all stumbling, three market strategists shared their views on the trading week ahead and how investors can protect their portfolios.
Warren Meyers, former CEO of Walter J. Dowd
“Barring a surprise coming out from Greece, I would say the trend is downward [for today],” said Meyers. “Nothing’s changed from the last week and the week before.”
Stocks logged their best weekly gainin more than two months last week, but Dowd said he is not convinced that the rally was sustainable.
“[Last week’s rally] was artificial to me and I don’t think we had a legitimate up—we had an options expiration week and a move up from the central bank putting dollars into Europe, but at the end of the way, Geithner gets ridiculed for trying to dictate what to do[over the weekend]…and nothing seems to be any closer to a resolution than we were a week or two ago.”
Jonathan Corpina, head of NYSE trading and sales for Meridian Equity Partners
“Investors have to continue to look at what’s coming out of Europe—and what’s working is probably doing nothing at this point right now,” said Corpina. “The markets are so fragile.”
Corpina said investors will be more encouraged to step back into the markets once they get more information.
Ed Ponsi, president of FXEducator
“Take advantage of the fact that the euro is down,” Ponsi told CNBC. “There are some great European companies that are going to benefit from a weaker euro.”
Ponsi recommended stocks such as Siemens, which he called “the German version of General Electric .”
He also advised investors to look into Nestle. “It’s a Swiss company, but now that the Swiss franc is tied to the euro, the Swiss franc should fall with the euro,” he explained.
CNBC Data Pages:
Monday's Top Dow Laggards:
Bank of America
No immediate information was available for any of the strategists above.