There are “great opportunities” in the stock market—both in the short-term and in the long-run, said Joe Heider, principal of Rehmann Financial.
“We look at a number of factors, which we think all point to a continuing bull market,” Heider told CNBC.
“Near-record corporate earnings, record cash on the cash balance of corporations, low-borrowing costs, favorable tax treatment…and manufacturing index is at a record level.”
The Bear Case:
Meanwhile, Steven Roge, portfolio manager at RW Roge & Co., advised investors to be cautious.
“Our biggest concern is the valuation of the S&P 500—it’s trading at 23 times normalized earnings,” noted Roge.
“Why I use the normalized earnings [number] is because the profit margin on the S&P 500 is a full standard deviation above its long-term 100-year historical norms,” he explained.
Scorecard—What They Said:
- Roge's Previous Appearance on CNBC (Feb. 23, 2011)
- Heider's Previous Appearance on CNBC (Jan. 14, 2011)
More Market Intelligence:
- S&P History Points to Great Year for Stocks: Strategist
- Stocks Are Good Bet as Inflation Looms: Mobius
- More Upside Room for Energy and Industrials: Stock Picker
CNBC Data Pages:
Monday's Top Dow Gainers (as of this writing):
Bank of America
Johnson & Johnson
No immediate information was available for Heider or Roge.
*GE is a minority shareholder in NBCUniversal.