With stocks lower for the fourth trading session, are we headed for a double-dip? David Kelly, chief market strategist at JPMorgan Funds, and Sandy Lincoln, investment strategist at M&I Investment Management, shared their insights.
“We’ve got a very soft economy—it’s a constant disappointment, but we don’t think we’re going to have a double-dip because the most cyclical sectors of the economy are already in the basement,” Kelly told CNBC.
“To get a double-dip recession, we need those cyclical sectors to roll over—I don’t know where they’re going to roll over to,” he continued.
In the meantime, Lincoln said the micro-developments are presenting a “very compelling case” in the markets and investors should look to buy individual stocks.
“The key ingredient is what companies have been doing over the last several years,” he said.
“They’ve been cutting costs, they’ve been prudently investing in their core businesses, they’ve been generating a lot of cash flow, they’ve got experienced managements in these companies and so if you look at the bottom-up company by company, you come to a conclusion that these macro-concerns begin to dissipate.”
In particular, Lincoln likes Parexel International .
Scorecard—What They Said:
- Kelly's Previous Appearance on CNBC (Aug. 19, 2010)
- Lincoln's Previous Appearance on CNBC (Jul. 22, 2010)
More Market Analysis:
CNBC Data Pages:
Tuesday's Dow Laggards (as of this writing):
No immediate information was available for Kelly or Lincoln.
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