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Credit Suisse: This Bull Still Has Legs

By    |   Thursday, 20 Aug 2009 10:07 AM

The stock market will likely pause a bit after its recent surge upward and then resume the climb within several weeks, says Bob Parker, vice chairman of Credit Suisse Asset Management.

“Probably over the next one or two weeks, we see the markets trading sideways,” he tells Bloomberg.

“Then come mid-September through probably November, we see another up leg in the bull market.”

Parker cites two main factors driving the rally: earnings and economic recovery.

The catalyst for the market’s whopping 7 percent gain last month was better than expected profits for the second quarter, he notes.

“If you look at earnings revisions, around 75 percent of earnings results in the second quarter came out better than expected.”

That impact is over. So now the market awaits third-quarter profit reports.

“I’m assuming we’ll see further positive revisions to corporate earnings for the third quarter,” Parker says.

“I think that will be a catalyst for a further leg up in the market.”

As for economic recovery, “I think we all agree that with certain exceptions, like some of the smaller economies in Europe and like central Europe, the global economy has now moved out of recession, arguably led by China.”

Others remain bullish on stocks too.

BlackRock’s chief equity strategist Bob Doll tells CNBC that while “markets never go in one direction without pauses in another direction, I think markets will end the year higher than where we are.”

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The stock market will likely pause a bit after its recent surge upward and then resume the climb within several weeks, says Bob Parker, vice chairman of Credit Suisse Asset Management.“Probably over the next one or two weeks, we see the markets trading sideways,” he tells...
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Thursday, 20 Aug 2009 10:07 AM
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