The Dow erased all of its gains on Wednesday after the Federal Reserve offered no surprises in its latest statement. Anton Schutz, president of Mendon Capital, told investors what to expect from the markets going forward.
“I’ve been trying to prepare myself for the supply coming into the market,” Schutz told CNBC.
“The real challenge is the speed and the size of it all. The fact that we’ve had BofA , Wells Fargo and Citigroup [repaying TARP] within just a few days of each other—that’s a colossal amount of money. It is a phenomenal achievement."
"There’s no reason why [Citigroup stock] can’t go from the low 3s up into the low to mid-4s, and that’s a huge return already,” added Schutz.
Schutz said the market will continue to chop around as people try to figure out growth, inflation and government policies.
“Stocks in general aren’t going to create a lot of return," he said. "But I believe that financials will create the greatest return.”
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No immediate information was available for Schutz or his firm.