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Gluskin’s Rosenberg Don’t Turn ‘Too Pessimistic’ on Stocks

By    |   Friday, 29 June 2012 11:02 AM

Many U.S. stock market strategists expect gains from the first half of the year to extend into the second.

Even David Rosenberg, the chief economist at Gluskin Sheff + Associates who has been a dedicated bear on stocks, is changing his tune a bit.

"You want to be careful about becoming too pessimistic in the current environment," he tells CNNMoney.com.

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Indeed that environment has sparked a 4.2 percent jump by the Standard & Poor’s 500 Index over the past four weeks.

Grass-roots support is growing for the federal government to attack its $15.7 trillion debt burden, Rosenberg says. And the political will to do so will soon attain critical mass, he says, though he adds that he’s not turning bullish on stocks yet.

But others are, even while acknowledging that violent corrections are likely. Many say corporate profits will continue to buoy the market.

"Companies have found a way to keep a lid on costs, so along with lower gas prices, that generally means stronger earnings," Joseph Tanious, global market strategist at JPMorgan Chase, tells CNNMoney.com.

Some market participants grew enthusiastic after European nations agreed on a plan Friday to attack their debt crisis.

"We've gotten used to being underwhelmed by the outcomes, so with little-to-no expectations for success, the fact that it appears we are going to get something substantial is a real positive for the market near-term," Art Hogan, managing director of Lazard Capital Markets, tells Reuters.

Editor's Note: Google Banned This Video But You Can Watch it Here

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