Behind the Numbers with Jeffrey Kleintop
"The current quarter is going to be a tough one economically–probably the worse of the recession–and earnings will reflect that as well," says Jeffrey Kleintop, our newest asset allocation panelist and LPL Financial's chief market strategist. "Though from a stock market perspective, I think we'll probably stay within the range that we've been in for the last three months, which is 800-1,000 on the S&P 500." Given that range, Kleintop says he advocates alternative investments. As for the second quarter, he says it will be one of healing. "Economic growth or earnings growth is unlikely to be positive, but stocks may begin to rebound within that range." He also points out that there are some signs of healing in the credit market. "I think that's a good leading indicator as to where the economy may be headed," he adds. "This downturn was caused by credit–I think the rescue has to come from the credit market as well."–Kara P. Stapleton
