Stocks will continue to move higher and benefit long-term investors, but not without some bumps in the road along the way, the chief economist at Wells Fargo said on Tuesday.
“The market is still trying to figure out that we have growth—we’re certain of that—but now we need to figure out the pace of that growth going forward, so we’re still searching,” John Silvia told CNBC Tuesday.
He added that stocks still have “some way to go,” but that the flux within the markets is to be expected, particularly in the short term.
“When you look at the history of the U.S. economy and the global economy, when the expansion and the growth start kicking in, it’s usually a three- to five-year period, and I think you’ve got a way to go in terms of the equity markets in general. In the short run, there may be a correction, but for a long-term investor, it is very positive,” Silvia said.
Last week saw both U.S. and European markets end the week on highs. The S&P 500 ended Monday’s session at 1,409.75, up around 30 percent from October 2011’s lows.
Some have cautioned against what appears to have been a sudden, sharp rally. Its longevity, especially, has been called into question, as the 1,400 level for the S&P 500 has been breached.Page 1 of 2 | Next Page