CNBC Stock Blog

Market Fears Now: 'Too Much Complacency' — and the Fed


Firms have begun hiring again and consumers are spending again. If the economy’s recovering, why aren’t markets roaring ahead? J.J. Burns, president of J.J. Burns & Co., and Greg Peters, Global Head of Fixed Income Research at Morgan Stanley, shared their insights.

Fear Versus Facts

“Consumers are spending, but they’re spending at a cost,” Burns told CNBC.

“Because they are going into their savings, it’s very tragic when consumers are not having organic growth.”

J.J. Burns said the recovery is going to be a “very slow grind,” as a lot of people are still underemployed and unemployed.

In the meantime, Peters said he still sees strength in the economy.

“The economy is sustainable and we feel pretty good,” he said. “What we worry about is the Fed and it’s our belief is that there’s too much complacency in the market.”

Peters said he remains overweight on the fixed income side.

“I still continue to like high yield, and our thesis has been: buy the junk,” he said. “So the worst companies are the ones we like—we think they get fixed and financed.”

“Anything with yield attached to them and spread product,” Peters added.

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No immediate information was available for Burns or Peters.