Markets opened flat on Wednesday, after a pair of private employment readings in anticipation of Friday's U.S. government jobs report. What should investors expect from the markets this month? Peter Costa, president of Empire Executions and CNBC market analyst, shared his insight.
“Short term, we wait on data everyday—we’re waiting on Friday’s non-farm payroll numbers,” Costa told CNBC.
“Longer term, I still think we’re still in a lot of trouble.”
Costa said he expects the federal government to raise taxes or raise money to pay for all the things they have done over the last nine months. In the meantime, he said, the state governments also face problems because tax revenues are down.
“This is a cycle that’s going to continue for at least this year,” he projected. “So I’m still bearish…We’ll have [market] movements go up and down but at the end of the year...we’re going to be here or a little bit lower.”
Although there are opportunities for investors to make money in the short term, Costa said this month will likely end lower.
- Watch Costa's Previous Appearance on CNBC (Dec. 23, 2009)
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No immediate information was available for Costa or his firm.