The stock market got a boost from economic reports on Friday that showed an increase in consumer confidence and improvement in the manufacturing numbers. Analysts and investors await results of the "stress tests" conducted on the nation's 19 biggest financial institutions, which will be released late Thursday afternoon next week. Find out what the experts had to say...
'Several Years' Before Recovery
The economy has “several years” of economic recovery ahead, said David Sokol, chairman of MidAmerican Energy. He said the housing market is the best indicator of the state of the economy. Unfortunately, he doesn’t see a balanced housing market developing until the latter half of 2011.
A Positive Stress Test
Peter Andersen, portfolio manager at Congress Asset Management Company said he is hopeful that the government’s stress test results, due to be released next Thursday, will come out "positive," and if there is an increase cash demand, the Federal Reserve will “definitely be there to shore things up.”Bright Spot For Semiconductors
George Scalise, president of the Semiconductor Industry Association, expects chip market demand to climb. Global semiconductor sales have risen 3.3 percent compared to the prior month, thanks to ‘smart phones’ and ‘net book PCs,’ which were the bright spots in the industry. However, he said the sector “won’t feel the benefits of the U.S. stimulus until 2010 and beyond.”
Encouraging Signals “All Over the World”
“We’re absolutely in the right direction for a global recovery,” said Raghavan Seetharaman, CEO at Doha Bank. He said through globalization and consumerism, there is a new economic model evolving that is producing positive signals “all over the world.”
Investing in Managed Futures
Kelly Campbell of Kelly Campbell Management recommended investing in managed futures, as the barriers of entry have come down. He said investors will be able to “lower the risk and raise returns"—even during a down market.
Markets to be ‘Sideways’ For a While
Rob Morgan, market strategist at Clermont Wealth Strategists, said markets are most likely going to be “sideways” for a while. He said the stocks have moved “too far too fast” and a market pullback would not only be healthy, but is expected.
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