Stocks extended their gains into a third week as bank stocks soared following new global regulatory requirements. Will the rally continue? Paul Schatz, president of Heritage Capital, and Christopher Zook, chairman and CIO of CAZ Investments, shared their outlooks.
“Short-term, markets are on solid footing—I’d liken it to a rocket ship that’s gassed up with a lot of fuel,” Schatz told CNBC.
Schatz expects markets to eventually “explode higher.”
“In the odd chance that it doesn’t [surge] with all the positive things underneath, I think it will fall 10 percent very quickly—which is not what I’m forecasting.”
Short-Term Jump?
In the meantime, Zook said markets are likely to see a short-term boost following the November elections, as some political uncertainties get cleared out.
“We can see some rally toward the end of the year,” he said. “Then, we face the economic realities of higher taxes and slower growth.”
Schatz Favors:
REITs
Consumer Staples
Treasury Bonds
Health Care & Biotech
Zook Favors:
Energy—particularly oil service and the major integrated oil companies
Health Care
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Scorecard—What They Said:
- Schatz's Previous Appearance on CNBC (Aug. 26, 2010)
- Zook's Previous Appearane on CNBC (Aug. 13, 2010)
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Market Views—Across the Board:
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CNBC Slideshows:
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CNBC Data Pages:
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Monday's Dow Gainers (as of this writing):
JPMorgan Chase
Bank of America
Alcoa
American Express
Microsoft
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Disclosures:
No immediate information was available for Schatz or Zook.
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