Some financial experts are maintaining a gloom-and-doom forecast but a portfolio manager in central Iowa has a more optimistic outlook. Jim Tausz, a financial planner in Clarion, says there are clear signs the economy is recovering and is on the brink of a bounce-back.
Tausz says, "Investors are as scared of the stock market as they’ve ever been, probably in the history of the market, and these spikes of fear and panic always precede a major stock market rally." In recent weeks, the stock market has seen encouraging rebounds, of seven-percent one day, four-percent more another day, and he says solid gains are being made.
"The price action tells me that probably a rally has arrived, that’s my opinion," Tausz says. "I think we’ve hit our low. I think we’re on our way to greener pastures here very shortly." He says the "ultimate bottom" has already been hit and believes the upcoming rally may last a full year, though he says there will be more ups and downs along the way.
"We started taking our people out of the (stock) market a year ago in October," Tausz says. "We carefully went in a little bit as time went on but we didn’t go in much. Most of the people we have at this current time are anywhere from 70 to 100-percent out of the market and they’re in money markets right now." He says the new lows should be seen as a "foundation" that’s under the market "and the bulls are going to ultimately be in control."