Expect 'U-Shaped' Market Bottom: Strategist

There are still problems in the economy that have to be fixed before the market can continue its upward trend, said Andrew Kanaly, chairman of the Kanaly Trust Company, and Bryan Piskorowski, managing director at Wells Fargo Advisors.

“We’ve had a market that has been subsisting on less than bad numbers—you look at the earnings numbers and you look at the economic data and it just hasn’t been as bad as expected and we’ve seen a slowdown in the rate of change,” Piskorowski told CNBC.

However, Piskorowski told investors not to expect a ‘V-shaped’ recovery, but a ‘U-shaped’ market bottom instead.

“Over the short-term, what that sets you up as we move into the end of August is more consolidation patterning,” he said. “The big picture is that this is going to be a long-drawn recovery.”

Kanaly said with high unemployment numbers, consumers are unlikely to go out and spend their money.

“Looking to the consumer to pull the economy out of the recession—you’re looking to the wrong place,” he said. “Consumers aren’t going to loosen their wallets until they feel they’ve got better employment prospects—and you don’t see any better job prospects on the horizon.”

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No immediate information was available for Kanaly or Piskorowski.

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