Six out of the last 10 Januarys have been down for markets, so what should investors expect this time? Michael Gurka, global asset strategist at EmpowerGlobal Funds, shared his market outlook.
“One of the things you’re starting to see, especially in the commodities front, is an enormous global profit-taking scenario and I think it will be short-lived,” Gurka told CNBC.
“That’s why you’re seeing people taking money off the table to end the year and recoup their profits and they’re sometimes hesitant on when they’re putting it back out. And that’s one of the reasons why volume comes back into the market in January.”
Gurka said the S&P is still looking bullish and he is “very optimistic” on stocks for the first quarter of 2010.
In the meantime, the U.S. dollar has been on the rise, concerning some investors about how a stronger greenback may affect commodity prices.
“Commodity prices will start to benefit from a weaker dollar but we’re not going to see that for a while," he said. "The dollar will continue to keep some strength.”
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No immediate information was available for Gurka or his firm.