First Quarter Earnings to Be 'All Over the Map'

Vinny Catalano, global investment strategist for Blue Marble Research, told CNBC’s “Morning Call” that first-quarter earnings will be “all over the map,” and this will force investors to become highly selective.

“Selectivity is going to matter a lot,” Catalano said Wednesday, adding that “...up until now, you’ve had a great opportunity to simply play the market.”

Ernie Ankrim, chief investment strategist for Russell Investment Group, said there’s “no question” that the string of 14 consecutive quarters of double-digit profit growth will end this quarter.

But a slowing economy will allow the Federal Reserve to cut interest rates, perhaps by the end of 2007, he said.

Earnings have risen about 100% since 1998, but the equity markets are up only about 30%.

“We’ve got a long way to go,” Ankrim said.