Strategists Split Over 2007 Volatility

Volatility is apparently here to stay. But for how long? Two investment strategists joined CNBC's Liz Claman to debate the timing of a calmer market.

Alison Deans, director of investment policy at Neuberger Berman, told "Morning Call" viewers that the "uncertainty" of investors and analysts will create further volatility through the first half of this year. But she sees the market stabilizing in the second half, as one question is finally answered: "Will the Fed hold, tighten or ease?"

Interest-rate "clarity" should eliminate "some" volatility and raise liquidity, Deans believes.

Subodh Kumar agreed -- about 2007's first half. But the chief investment strategist at Subodh Kumar and Associates warned of a "knee-jerk reaction" to a Federal Reserve move. He said that the Fed easing rates could "give the impression that the economy is weak," driving the market to rise -- "but then it'll reconsider." He pointed to average earnings views for the first quarter, which dropped to 3% -- but were up 7% a mere three months ago.

Kumar declared that "The reality is" that markets will "stay volatile all through this year."