Everyone on Wall Street is watching to see how the holiday season pans out. The important question for investors now: Will consumers buy enough to keep the stock market going? Scott Redler, chief strategic officer at T3live.com, and Mike Rubino, president of Rubino Financial, shared their outlooks.
“Right now, the market’s continuing higher because the bar has been set very low and the year-over-year comparisons are very low,” Redler told CNBC.
Redler said it is possible for the markets to rise another 5 percent going into year-end.
“But there will be bigger problems that we have to deal with going into the first and second quarter of next year, and that’s because of the consumer,” he said.
“It’s because they are pulling back, they are starting to save and they’re starting not to use all their credit, which is [actually] good for the longer term,” Redler said.
In the meantime, Rubino warned that small and large businesses will continue to suffer because of consumers’ inability to make purchases.
“The consumer is going to be the one driving the economy, not the government—the government isn’t doing anything to help the consumer,” he said.
“Unemployment is not changing because they’re not focusing on creating jobs and if you don’t create jobs, then you don’t create an atmosphere where people feel comfortable spending money.”
“I don’t see the economy getting back to the levels there were, which means we have a great chance for a double-dip recession, and a weak economy at best,” he said.
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No immediate information was available for Redler or Rubino.