Markets rose on Tuesday after reports showed consumer confidence improved and home prices stabilized. Can stocks continue upward in 2010? Jerry Castellini, president and chief investment officer of CastleArk Management, shared his market outlook.
“We feel like the market still has pretty good legroom going into next year,” Castellini told CNBC.
“This is a cyclical recovery…all the forward-looking indicators suggest that we’re going to see 4 to 6 percent first-, second- and potentially third-quarter GDP numbers.”
Castellini said although he expects financials to perform well, he would not put his money in the sector.
“It’s a tough space—financials are going to rise because their credit quality and balance sheets are going to improve with the overall economic cycle," he said. "But if that’s the driver, then why not get exposed to companies that are similar multiples, but without the same ultimate financial risk?"
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Disclosure information was not available for Castellini or his company.