Paulsen Sees Declines as a Pause in Upward Trend

Wells Capital Management’s James Paulsen tells Bloomberg that the Greece bailout removes the imminent risk from the European crisis, and lets investors focus on a nice global economic recovery. Following the market’s recent decline, Paulsen says investors now have an opportunity to get back into the market, or to increase their risk exposure. He adds, however, that major volatility like that which we saw  last week could scare many away from stocks if it continues.… Read More

Sonders Not Panicking

Liz Ann Sonders, chief investment strategist at Charles Schwab, says the Greek debt crisis is much different in nature than the subprime mortgage crisis that pummeled U.S. markets in 2008, and says investors who’ve been sitting on the sidelines should use the recent market dip as a buying opportunity — if they have the stomach for it. “The key is the investor’s current allocation relative to plan and risk tolerance,” Sonders writes in a piece… Read More

Herro Sees Dip as European Buying Opportunity

David Herro, whose Oakmark International I fund has beaten 99% of its peers over the past 10 years and 98% of its peers over the past year, says the recent heating up of the Greek debt crisis hasn’t turned him off to European stocks. “They’re going to be impacted in the short term; in many cases the share price have been hit 5, 10, 15, 20 percent in the last couple week alone,” Herro tells… Read More

El-Erian on How the Greece Crisis Helps — and Hurts — the U.S.

In an interview with CNBC, PIMCO CEO Mohamed El-Erian says the Greek debt contagion will cause investors will divert a good deal of money away from Europe and into the U.S. markets. But, he says it also means more risk aversion among investors, which means the capital diverted to the U.S. will most likely go to the bond markets. And he says the crisis will be a deflationary shock to Europe, hurting global demand just… Read More