Market Will Go Higher: Stifel CEO
By: Investors in this market may be missing a great opportunity if they are sitting on the sidelines, Stifel Nicolaus President and CEO Ronald Kruszewski said Monday.
“You’re going to look back and you are going to see opportunities to buy high quality dividend growth stocks and you are going to say, ‘wow, did I miss an opportunity',” Kruszewski told “The Kudlow Report.”
Stocks closed flat in a choppy trading session Monday, as gains were limited after a disappointing factory orders report and amid worries over uncertainty surrounding the European debt crisis. The Dow Jones Industrial Average, which wiped outall its gains for 2012 last Friday, closed down again Monday.
However, Kruszewski believes things will soon start looking up.
“The European crisis will get resolved,” he said. “They are going to get to the right answer, and when they do and that bell rings and you have a policy response, the equity market is going to go higher.”
TJM Institutional Services’ Jim Iuorio, however, isn’t convinced the weakness is over, especially considering Monday's factory orders report and last week’s employment report that showed the U.S. added just 69,000 new jobs in May, while unemployment increased to 8.2 percent.
“There is no question we are headed in the wrong direction,” he said. He thinks it may be two to four months before things improve.
Iuorio is also not convinced Europe will get its act together.
“It doesn’t seem like Europe is giving us any reason to think they’re going to … come to the right decision,” he said. “To me, it still seems like there is a solid possibility for a calamitous end there.”
Iuorio told Larry Kudlow he wants to be “mildly short the stock market.”
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