Comments from US Federal Reserve Chairman Ben Bernanke saying that the pace of economic contraction will probably slow don't mean there will be a recovery in the second quarter, Marshall Gittler, chief strategist at Deutsche Bank, Private Wealth Management, told CNBC Wednesday.
"It’s been our view that the first quarter would be the worst quarter but doesn’t mean the second quarter is going to be good, it just means it’s going to be less bad," Gittler said.
Although there is still a while to go before the equities' performances fully recover, stocks trading at $1 or $2 and the removal of bankruptcy risk from the markets means that "there is still room that profits will go up eventually," he said.
- watch the full interview with Marshall Gittler above.
While some analysts and strategists in the market stress that there are signs of recovery across the European equity markets, Gittler said he expected a recovery, but not in the next few weeks.
"I think we have gone very far, the market has discounted a recovery that is yet to be seen, I think for now we will perhaps be in a stabilization or consolidation period, signs of not 'green shoots' but actual trees coming up," he said.
- written by Lianna Brinded