Wirtz said the inflection points have been reached not only in the economy but on the earnings front as well. He said earnings are going to show improvement in the next 6 to 7 quarters and we are going to finish the year in a positive GDP.
In the meantime, Battipaglia said the non-financial private sector is still going through massive deleveraging, which means GDP contractions are going to continue, despite the government’s best efforts.
“The world still believes the U.S. Treasury and the Federal Reserve will not fail and that the ‘too big to fail’ doctrine has been applied to all the cancer points in the banking system,” he said.
Despite their different outlooks, Battipaglia and Wirtz had the following recommendations for investors.
S&P Health Care
S&P Consumer Discretionary
No immediate information was available for Battipaglia or Wirtz. ______________________________