×

Market Rally Will Continue into 2010: S&P Equity Strategist

The Dow jumped Friday morning on a jobs report that suggested unemployment is finally starting to peak. What should investors be watching for in the next few weeks? Alec Young, equity strategist at Standard & Poor’s, shared his market outlook.

“The market needs news—we’ve been bumping up on this 1,110 level on the S&P, which is a key technical resistance level,” Young told CNBC.

“We’ve been spending 6 weeks trying to clear this level and we’ve had a lot of good news—the risk trade’s been working; the dollar’s been weak; the commodities strong; energy, materials and areas we like have done well.”

Young said the equity rally will continue into 2010, albeit at a more modest pace.

But he added that an increasing number of investors will continue to question whether private-sector end-demand will be strong enough to sustain growth, as the stimulus begins to fade heading into 2011.

Young is “overweight”materials, energy and industrials and “underweight”utilities and telecom.

  • Watch Young's Previous Appearance on CNBC (Nov. 19, 2009)

______________________________
More Market Views:

______________________________
CNBC Data Pages:

______________________________
CNBC Slideshows:

______________________________

______________________________
CNBC's Companies in the News:

Citigroup

Comcast

General Electric*

Bank of America

  • BofA's TARP Repayment Could Cause Others to Follow

Goldman Sachs

  • Goldman Sachs Meets Investors Over Bonuses: Report

* General Electric is the parent company of CNBC.

______________________________
Disclosures:

No immediate information was available for Young or his firm.

______________________________

Disclaimer