Stocks advanced on Tuesday, following a series of government reports and earnings that showed hints of strength returning to the economy. David Kelly, chief market strategist at JPMorgan Funds, and Stephen Wood, chief market strategist at Russell Investments, discussed their insights.
“A double dip is not a zero probability, but a low probability,” Wood told CNBC.
But Kelly said a double-dip is “very unlikely.”
“We’ve still got a very soft consumer sector and that's still a problem for the economy, but it’s the business investment side that’s pushing the economy and we think it will continue to do that,” he said.
Kelly said while the economy is in a "square root"-shape overall, he sees a V-shaped recovery in corporate profits.
"When you look at reality as opposed to how people feel about the markets, it still seems like there’s a lot of opportunity in stocks relative to fixed income right now,” he said.
S&P Consumer Discretionary
Scorecard—What They Said:
- Kelly's Previous Appearance on CNBC (Aug. 11, 2010)
- Wood's Previous Appearance on CNBC (Aug. 6, 2010)
Market Views—Across the Board:
- How to Make 'Quick Money' in This Market: Stock Picker
- Art Cashin: Hindenburg Omen Will Play Out in 3-4 Weeks
- Economy to Grow Below Trend for Years: BlackRock's Doll
CNBC Data Pages:
CNBC's Companies in the News:
- Starbucks Backs Outlook Despite Rising Coffee Prices
No immediate information was available for Kelly or Wood.