The Federal Reserve's Open Market Committee is expected to issue its latest decision on interest rates and the US economy this afternoon. Paul Schatz, president of Heritage Capital, discussed his insights ahead of the event.
"Since the bull market began in March '09, almost all Fed days have been higher," Schatz told CNBC.
“I expect the markets to be higher today—although after yesterday, I don’t think we’re launching back towards Dow 11,000 until maybe early to mid-late July.”
Schatz expects the bull market to peak during the summer, as tax increases are likely to hit businesses and investors in 2011.
“I have grave concerns of a double-dip coming a lot sooner,” he warned and said gold prices are expected to continue rising.
“Gold this year is headed towards $1,500; although this decade, gold goes somewhere in the $2,000 to 2,500 range,” he said.
“There’s been a flight out of paper assets for 2.5 years now and I don’t see that ending anytime soon, with the global quantitative easing and with the myriad of economic problems.”
“The dollar right now is least ugliest, but eventually, we’re going to hit the dollar; and gold is going to be the continued safe haven for a long time to come, even in deflationary times.”
Scorecard—What He Said:
- Schatz's Previous Appearance on CNBC (June 21, 2010)
Opposition—Strategists Say "No Double Dip!":
- Market Will 'Feel' Like a Double-Dip—But It's Only Volatility
- No Double-Dip Risks Ahead: Strategist
CNBC Data Pages:
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No immediate information was available for Schatz or his firm.