Waiting for Reality to Catch Up

The Street is likely to pull back after recent gains, says Evergreen Investments' John Lynch. After that, he says the climb will continue

The market needs some good economic news to justify its 25% climb in the last three months or so. That's the opinion of John Lynch, chief market analyst for Evergreen Investments, who particularly wants to see improvement in jobs and manufacturing. Although Lynch expects the market to be "taking a breather" for the next six weeks, he thinks a rise of 7% to 8% is possible before yearend, to around 1050 on the Standard & Poor's 500-stock index. The sectors he sees as most promising now are financials, technology, and health care.

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