Tags: Keon | stocks | correction | earnings

Money Manager Keon: Stocks Now 'Represent Good Value'

By    |   Wednesday, 15 October 2014 11:36 AM

The S&P 500 index has dropped 7.9 percent since hitting a record high Sept. 19, amid concern about slowing global economic growth.

But not all market participants are full of doom and gloom.

"This drop in stocks we've had in the last few weeks, there's a pretty good chance it's already run its course. I think stocks represent good value," Ed Keon, a portfolio manager at Quantitative Management Associates, told CNBC.

"This may be the time we get a full-blown 10 percent correction, but there's also a chance we will not get a 10 percent correction and we head higher."

"I think in the long run, earnings are the driver of stock prices," Keon noted. Several companies already have reported strong third-quarter earnings, including Intel and BlackRock.

"This quarter the consensus is for growth of around 6 percent," he said. I think when all the numbers are in, it will be around 8 percent." Keon also sees a gain of that magnitude for the S&P 500 index this year.

"We're still in a bull market and I think we're going to head higher before the year is out."

Not everyone is so enthusiastic about stocks.

"The economy isn't as strong as perhaps everyone thought," Bruce Bittles, chief investment strategist at RW Baird & Co., told Bloomberg. "The concern here is that the weakness in Europe and Asia is going to be exported to the U.S., and our economy is going to be negatively impacted."

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The S&P 500 index has dropped 7.9 percent since hitting a record high Sept. 19, amid concern about slowing global economic growth.
Keon, stocks, correction, earnings
246
2014-36-15
Wednesday, 15 October 2014 11:36 AM
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