The Dow Jones Industrial Average could rally to 11,000 in the short term as optimism over incoming President Barack Obama boosts investors’ confidence, Clem Chambers, CEO of ADVFN, told CNBC.
“I think we can see the Dow between 10,000 and 11,000 in relatively short order, but whatever happens going forward I think we’re going to have a strong year this year,” Chambers said.
However, the stock market will remain highly volatile throughout the year, warns Chambers.
“It’s going to be incredibly turbulent, there’s going to be lots and lots of volatility, but we’re going to get an Obama bounce,” he said. “The new president is going to put a lot of optimism into people and help turn the tide,” he added.
Toward the end of the year Chambers said he is expecting a correction back down toward 10,000 points on the Dow, but there will be “no long-term, clear trend for two or three years,” he said.
There is a “universe of stocks to pick right now," Chambers added.
He is currently building a portfolio of both “mad, crazy stocks that could go bust tomorrow” and “really good companies that have just been hammered down with the whole index.”
(Watch the full Clem Chambers interview above).
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