‘Serious Market Problems’ in the Fall—Gold to Hit $2500
By: JeeYeon Park
Stocks fell on Tuesday after reports that jobless claims jumped last week and the Philly Fed gauge of manufacturing activity tumbled. Christian Thwaites, president and chief executive of Sentinel Asset Management, and Paul Schatz, president of Heritage Capital, shared their views.
“Since we had the big May correction, the market has been dominated entirely by macro economic and political events,” Thwaites told CNBC.
“When that happens, the market fundamentals tend to get pushed down.”
Thwaites said the economic news so far have been “not bad” and will support a possible 2 to 3 percent GDP growth.
“And within that, there’s some good bargains to be had, as this market has been spooked around sideways and lots of trading activities are masking good fundamentals and values,” he said.
In the meantime, Schatz said investors should expect a rally through June and into August—before seeing “serious problems” in the fall.