The recent bounce in the U.S. dollar has gotten some investors to worry about the next move. David Kelly, chief market strategist at JPMorgan Funds, and Steven Stahler, president of Stahler Investment Group, shared their market outlooks.
“We should calm down about the dollar,” Kelly told CNBC.
“The dollar is not plunging—what’s it going to plunge against? I understand the issue over in Asia, but if you look at the yen, euro and sterling—those countries are growing slower than we are right now and they have bigger budgetary problems.”
Kelly said he expects the dollar to continue to come down, but relatively slowly.
“A slow decline in the dollar is okay—it’s helping our exports, our exports are growing rapidly,” he said. “That’s probably what we need to see.”
Kelly advised investors to be overweight stocks and underweight Treasurys, adding that the recovery is “for real.”
Stahler agreed that a falling dollar is beneficial for exports.
“We need to see a lot more exports; however, I think foreign trade is looking at us to start buying from them,” he said. “They like to export a little, so the world wants to see our dollar stronger.”
Stahler added that he expects that economic recovery to be slow.
Stahler Likes:
S&P Energy
DJ REIT Index
Kelly Likes:
S&P Technology
S&P Consumer Discretionary
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Top Energy Firms:
ExxonMobil
Chevron
Constellation Energy
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NRG Energy
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Disclosures:
No immediate information was available for Kelly or Stahler.
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