They say old habits die hard. Nothing could ring more true on Wall Street where, once again, European debt and banking worries have eclipsed positive domestic news on the jobs front. Now that we are more than 2 years into this tired old saga, a growing number of investors large and small are hungry to kick the habit and put the Euro/European crises behind us once and for all. There's no telling when that will happen, but pros like Mark Lehmann, the president and director of equities at JMP Securities say when it does - look out.
"I think there is a likelihood in the next 60 to 90 days that you get some positive (European solutions) news," he says. "That to me is the biggest potential for upside. The actual conclusiveness of what happens in Europe, that's gonna get the market higher."
Further bolstering Lehmann's positive outlook is the contrarian observation that "there is a lack of bullishness across all markets." He says in the attached clip that virtually every industry peer he speaks with all seem to be saying the same thing, that they have "no reason to be more bullish."
He's not without concern though and points to the strong Dollar/weak Euro as one area that will take a bite out of multi-national earnings, as well as the price of crude oil, which has gained 30% in 3 months.
And then there are interest rates. Some have argued that the yield crowd will chase rates higher, but Lehmann thinks otherwise and predicts that even a tiny increase will prompt investors to tweak their allocation and restore some of the money they pulled from equities and poured into bond funds last year.
"Once that changes it is going to be a dramatic change," he says.
Now if we can just get some closure on Europe....
What do you think? Is a Euro-fix nigh or still the stuff of dreams? Tell us what you think in the comment section below, on the Breakout Facebook page or via Twitter.
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