| Biggest Problem? Uncertainty Causing Cash Hoarding: Strategist |
August 23, 2010 - 9:05am — europac admin
By:
JeeYeon Park
Source:
CNBC
August 20, 2010
It’s been a tug between the bulls and bears over the last few weeks. So which side will win out? Art Nunes, portfolio manager at IMS Capital Management, and John Browne, senior market strategist at Euro Pacific Capital, discussed their market outlooks.
“The primary trend remains up—we find ourselves in a bottoming process here,” Nunes told CNBC.
In the meantime, Browne said he sees several challenges from the government facing the U.S. economy.
“First, there’s the battle between government manipulation and economic reality; and second, between economic deflation and government reflation— and that’s really hurting the economy,” he explained.
However, Browne said uncertainty remains the biggest problem.
“That makes consumers, executives and investors fearsome, and therefore, they hoard cash," he said. "They’ve got trillions of dollars on the sidelines, which shows fear.”
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