Jim Swanson, chief investment strategist at MFS Investment Management, told CNBC’s “Closing Bell” that he expects the stock market to be generally downbeat this summer.
“(I look for) a soggy summer with down spikes because the market hates uncertainty,” Swanson said Monday. “But I think we’re going to come out of the year okay.”
He said the market sold off last week when investors finally realized the Federal Reserve Chairman Ben Bernanke wasn’t going to cut interest rates. “You’re not going to see a decisive move up in stocks until the end of summer,” Swanson added.
David Bianco, chief U.S. equity strategist for UBS, said investors are focused on interest rates.
“What we’re having is a bit of a growth scare, (and that’s) very different from what investors have been worried about for the past few months,” Bianco said. “Investors are realizing that the U.S. economy is in decent shape and the global economy is having a positive influence on S&P earnings. That’s helping corporate spending and even the jobs environment.”