Stocks rallied on Tuesday, following a 50-point drop in the Dow at the end of last week. So is the worst over for the correction? Jeffrey Saut, chief investment strategist at Raymond James, and Andrew Kanaly, chairman of Kanaly Trust Company, shared their market outlooks.
“There could be more to come—keep watching the dollar and the risk asset relationship,” Kanaly told CNBC.
“As you noticed, they’re very well intact: as dollar goes up, those risky assets go down and the contrary happens.”
Kanaly said a bigger correction could still happen if the dollar carry trade begins to unwind.
Gold prices rallied on Tuesday to a two-week high as the euro rebounded versus the dollar. What's ahead?
“Eventually, the dollar/gold relationship will break down,” Kanaly said. “People don’t want to own the euro, so the best two places to go right now are dollar and gold.”
In the meantime, Saut said he expects markets to trade higher between now and mid-year.
“It’s rare to have more than 10 percent correction in the first year of a bull market,” he said.
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More Market Intelligence:
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- Dow Could Return to January Highs: Charts
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Major Earnings Reports This Week:
Whole Foods
Hewlett-Packard
Wal-Mart
Barrick Gold
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Disclosures:
No immediate information was available for Kanaly or Saut.
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