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‘Do Not Chase This Market’: Deutsche Bank’s Bianco

Friday, 14 Sep 2012 | 1:57 PM ET

Despite recent stock market gains, investors should be cautious into the last quarter of 2012, Deutsche Bank Chief U.S. Equity Strategist David Bianco said Friday on CNBC.

“I’m happy that the market’s basically touched our year-end price target, but I would tell investors: ‘Do not chase this market.’ I think now is actually a time for discipline and patience,” he said on “Fast Money.”

Bianco said the market is likely to head lower before the presidential election.

'Do Not Chase This Market': Deutsche Bank's Bianco
Now is the time for investors to practice discipline and patience, Deutsche Bank Chief U.S. Equity Strategist David Bianco says.

(Read More: Your Money, Your Vote)

“If we get fiscal policy that is as strong as this monetary policy, then I do the market climbs into year-end and early next year,” he said.

Bianco added that he was positive on the Federal Reserve’s move to keep interest rates lower through 2015.

“This has been a Fed action that we welcome in the sense that we have been disappointed about the labor market and some of the economic indicators of late, but as Bernanke said himself, there’s only so much he can do, and I take some concern that the world economy has clearly slowed,” he said.

Bianco noted that the slowdown weighed on the global profit outlook, especially in emerging economies.

“This is something that makes us less enthused about the earnings prospects than we were a year ago,” he said.

Trader disclosure: On Sept. 14, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long call sreads in AAPL; Jon Najarian is long call sreads in GS; Jon Najarian is long call sreads in JPM; Jon Najarian is long call sreads in SBUX; Jon Najarian is long call sreads in FB; Jon Najarian is long call sreads in AMZN; Jon Najarian is long call sreads in GOOG; Jon Najarian is long call sreads in VZ; Jon Najarian is long call sreads in S; Jon Najarian is long call sreads in LVS; Jon Najarian is long call sreads in WYNN; Jon Najarian is long GLUU; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long STSI; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long JPM CALLS; Pete Najarian is long INTC; Pete Najarian is long YHOO; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Steve Weiss is long AAPL CALLS; Steve Weiss is long TBT; Steve Weiss is long JPM; Steve Weiss is long BAC; Steve Weiss is long BBT; Steve Weiss is long VOD; Steve Weiss is long VZ; Steve Weiss is long T; Steve Weiss is long MT; Steve Weiss is long VALE; Steve Weiss is long QCOM; Steve Weiss is long BRCM; Steve Weiss is long AIG; Steve Weiss is long TOT; Steve Weiss is long HK; Steve Weiss is long COP; Steve Weiss is long MSFT; Steve Weiss is long M; Steve Weiss is short AAPL Puts; Steve Grasso is long PAY; Steve Grasso is long QQQ; Steve Grasso is long HPQ; Steve Grasso is long MU; Steve Grasso is long ZNGA; Steve Grasso is long KO; Steve Grasso is long KSS.

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