Markets bounced back on Tuesday as banks rallied and a gauge of fear in the market dropped significantly. Stocks had gotten off to a weak start after a report showed housing starts unexpectedly fell to a record low. In the meantime, experts expressed mixed feelings about the market outlook. Read and listen to what they had to say...
'Recession to End in 2010'
Neville Isdell, former CEO of Coca-Cola and a GM board member, said he doesn’t think the recession will end until next year. “We’ve bottomed out and we haven’t rolled off the cliff,” he said. “I think the government has played it very well.”
Expect a Strong Market Pullback
Bernard McSherry of Cuttone & Co. said traders are expecting a “strong market pullback” and they're debating whether to get on board before it's too late — or wait for such a pullback.
Housing Market Firming?
Professor Susan Wachter of Wharton Business School said the housing market is beginning to see some consistency. “Not only have home sales not declined, but home sales are actually up a bit in the West and that’s where we see a slowing in price declines.”
Still Skeptical on Market Rally
Dan Deming of Stutland Equities said he is skeptical about the market rally. He said housing starts are not bottoming out yet because there’s an oversupply in the housing market. In the meantime, unemployment needs to be focused on over the summer.
In Pays to Advertise...Somewhere
The advertising business suffers severe headwinds from many directions but we are still seeing growth in certain areas, said Sir Martin Sorrell of WPP. For example, China and India are performing better than the rest of the world. He said 2009 will continue to be difficult for the industry, but recovery will come in 2010.