No Signs Of Markets Losing Steam Shortly: Strategists

Markets in the US ended 1% higher yesterday. An article published on CNBC quoted Binky Chadha (chief US equity strategist at Deutsche Bank) and Larry Kantor (head of research at Barclays Capital) as saying that the rally in the markets should continue throughout the earnings season.

Chadha believes that the stocks in the financial and industrial sectors will outshine the broader market, while the technology and consumer discretionary sectors have what he calls the “smaller overweights.”

Meantime, Kantor, who projects bullish markets, said that things might fall apart if the Fed’s tightening of the rates causes the economic recovery to stall or corporate profits to start declining. Kantor believes that the markets will start pricing in the Fed tightening by the middle of the year, in case there is a significant recovery in the US labor market.

More news from CNBC here.

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