Lee, on the other hand, thinks investors are too negative. “I still think investors are viewing the economy today through a lens that I think is distorted. They think the economy can be tipped into recession by any little thing,” he said. “…I just think we may have a more durable expansion and that’s simply because companies have stayed so cautions that they’re not going to get caught over their skis.”
He said housing is looking to be one of the brighter spots in the economy, and further turnaround there would be a positive.
As worries about Spain swirled, financials were the worst performers Friday, down 1.5 percent. They were also the worst performers for the week, down 2.4 percent. The euro fell one percent against the dollar Friday, and Spain’s 10-year was yielding a record 7.27 percent, a level that raises concerns about the country’s ability to fund itself. Spain this past week announced an austerity plan and tax increase. The debt-laden Valencia region Friday asked for financial aid, spurring fears that the Spanish government itself will need a bailout.
The euro zone deal to bail out Spain’s banks was also a source of concern, as it left the debt on Spain’s balance sheet. “It will increase Spanish debt,” said Alan Ruskin, G-10 currency strategist at Deutsche Bank.Page 4 of 9 | Prev Page | Next Page