Positive economic data including a strong GDP outcome helped fuel the market rally on Thursday. Will the economic data continue to drive stocks higher? Robert Carey, CIO of First Trust Advisors, shared his market views.
“When you break down what contributed to the GDP numbers, it really wasn’t government that drove it—it was actually personal consumption that provided the biggest surprise to the upside,” Carey told CNBC.
“The consumer is not dead.”
Carey said he expects the Federal Reserve to start discussing the possibilities of raising interest rates in the early part of 2010.
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“We all know that they can’t keep rates low forever,” he said.
Carey also said from a stock market perspective, we are faced with two "back-to-back years of 20 percent increases in earnings," based on consensus numbers.
“If you take a look at the reality, which is that companies are beating consensus estimates handily, I think you’re going to see an explosion of earnings in the next 12 to 20 months and even with higher interest rates, it won’t be enough to derail this market recovery,” he said.
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No immediate information was available for Carey or his firm.