Today marks the final day of the third quarter and stocks were tepid after manufacturing and jobs data. John Merrill, founder and CIO of Tanglewood Wealth Management and Bill Spiropoulos, CEO at CoreStates Capital Advisors told investors how to best prepare for the upcoming fourth quarter.
“There are positive economic surprises that are going to come in the rest of the fall,” Merrill told CNBC.
“That’s what the leading economic indicators and markets are telling us.”
Merrill said today’s positive feedback loop is a mirror image of the negative feedback loop during the fall and winter of last year.
“Better economic numbers lead to better corporate earnings outlook, which leads to rising corporate and bond prices which in turn improves balance sheets and more economic growth,” he said.
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Merrill is “overweight” Asia, saying the “rapid development” there and the rising middle class is going to be the engine of growth for the next decade.
He also likes high quality stocks such as P&G, Nestle and Walgreens. He said that although they’ve been laggards in the rally, that may change as the market progresses.
Spiropoulos said while the economy was dependent on consumers during the last two recessions, this time it will be supported by “good old fashioned corporate America and [U.S.] manufacturers.”
“We’re going to export, export, export good old fashioned American quality,” he added.
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No immediate information was available for Merrill or Spiropoulos.