The rally on Wall Street began to fade Monday, with the S&P and Nasdaq turning negative, after a global rally that had spilled over into U.S. trading this morning. Read and listen to what the pros had to say...
Expect 15% Pullback Before Recovery
"Unfortunately, we see a W-shaped recovery, both in the equity markets and in the economy," said Emily Sanders of Sanders Financial Management, adding that we're on "the top edge of the 'W' right now."
"Stocks are overvalued in our opinion," Sanders said. "The good news has been overinflated and we will see a 15 percent retracement in the Dow and S&P before things start leveling out and can truly start to recover."
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Stocks Could Rally 10-15% by Year-End
Investors should continue to buy on the dips in the stock market because there could be a further 10 to 15 percent rise before the end of the year, said Daniel Vassall-Adams from Helvetia Wealth. He thinks that the economic data will continue to bring positive surprises and retail investors will start switching out of corporate bonds and into equity funds.
Time to Buy the Markets
"Things look bullish on most stock markets," said Royce Tostrams from Tostrams Groep. He said that last week the markets formed a higher low, signaling a "buy."He sees the Dow “easily” hitting 12,000. “Things [in the U.S.] look very positive,” he said.
Recovery Will Equal Slump
The economic recovery will be of equal force to the slump and there is currently a vacuum between production and consumption, said Peter Toogood from Old Broad Street Research. “It’s still a 'V-shaped' recovery…the downturn was deep and the recovery will be the same.” There’s still a lot of money on the sidelines waiting to participate in the market, he added.