Pros Say: Markets to Rise 10%—With No Pullbacks

Stocks advanced on Wednesday as investors got some much-needed good news on the economy, including a report that showed existing-home sales—and home prices—have started to rise. Mortgage applications fell 3.5 percent, however, as rising mortgage rates depressed refinancing demand. Read and listen to what the experts had to say...

Expect Markets to Rise Another 10%

"The big money isn't in the market," and many investors did not enter the recent rally, said Stefan Muller from F.I.B. “I expect the market to go up another 10 percentand reach really critical chart levels,” he said. “People will go back into the market and that’s why we’ll go up, and we’ll not have that pullback that people want to see.”

Counterpoint: Charts Predict Coming Slump for S&P

The S&P 500 index is due for a pullback and will need to hold above 944 to avoid a drop below 900, said Chris Locke at “We’re going to start to lose upside momentumjust as we enter a weak seasonal period going into October and November,” he said. Locke added that oil is also due for a drop, but gold remains a buy on any dips.

Q3 Real GDP Growth Will Be Over 3%

Fed Chairman Ben Bernanke will be reappointed and that makes sense, said Allen Sinai of Decision Economics. “The chairman and the Fed have come on strong in the latter part of the year and have done a lot of great things to preserve the banking system and the chaos that we were headed into,” he said. Sinai added that real GDP growth will be over 3 percent in the third quarter.

Consumer Saving at an ‘Unprecedented Rate’

According to data, "people are saving at an unprecedented rate," especially in the U.S. where "saving is very rare," said Richard Sparks from Schaeffer's Investment Research. "People are actually hunkering down in order to weather whatever storms are on the horizon."


Fed Exit Strategy Has Begun

Alan Blinder, former Fed vice chairman, said banks themselves have started an exit strategy by demanding less credit from the Fed. “The Fed’s attitude was always to be passive about the amounts,” he said. “So you can call that an exit strategy, but it’s not any action by the Fed.”

Should Retailers be Bailed Out?

We certainly need some sort of stimuluswith the consumer being 70 percent of GDP to help them get out there again, said Rachelle Bernstein, of the National Retail Federation. “The Chinese have put into effect a program that sounds somewhat similar,” she said. “They’ve handed out vouchers to their populous to get them spending more and I understand that it has been pretty successful in helping their economy.”

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