Will the market climb higher this fall?
Even after a sloppy summer, stocks look like they will keep grinding up, 2 investing pros say.
Despite the rough ride this summer due to international turmoil, stocks look like they're poised to continue their upward march, two market watchers told CNBC on Friday.
The Dow Jones Industrial Average ($INDU), Standard & Poor's 500 Index ($INX), and Nasdaq Composite Index ($COMPX) are on pace to clock in their biggest weekly gains in six weeks, after mollifying remarks Thursday from Russian President Vladimir Putin about Ukraine and an easing of tensions in Iraq.
"Stocks have been sloppy this summer. [But] we're still looking like we're grinding higher," Rebecca Patterson, chief investment officer at Bessemer Trust, said in a "Squawk Box" interview. "We've stayed overweight [stocks] and ridden through a sloppy summer."
Alongside Patterson, Ed Keon, portfolio manager at Prudential's QMA Financial, said investors should not ignore Ukraine and Iraq. "But as long as you still have the economic engine working and you still have companies generating profits, the stock market is going to want to go higher," he said.
Stocks are not necessarily cheap, he continued, describing them as "fairly valued."
Both analysts said they're watching the economic slowdown in Europe closely and pulling back on investments there. New data Thursday showed stagnation in euro zone economic growth in the second quarter, as Germany's economy contracted for the first time in over a year and France's economy stalled.
With European growth slowing, Keon is seeking safer shores in American companies. "The United States is kind of like a growth stock. You're paying a little bit of a premium, but you're getting [surety] of earnings and you have a better overall macroeconomic background."
Patterson is optimistic about the U.S. economic picture, despite lowered earnings and sales outlooks from Wal-Mart (WMT) and Macy's (M) this week. To make her case, she pointed to low borrowing costs, increasing home prices and falling prices elsewhere. "The picture for the U.S. consumer going forward into the fall right now -- knock on wood -- is looking very good."
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THE MARKET WILL RISE TILL THE NEXT RECESSION HITS IN ONE OR TWO YEARS.
What else is new.?
"Can the Market Climb Higher This Fall"
It sure can as long as the scum bag manipulators have their way. No amount of negative news will derail this market as long as it is being controlled and not allowed to perform in a free market society. Our gov continues to lie about the job market, unemployment, consumer confidence etc. to give the illusion all is well. Europe and Asia economies are worst than the USA but it doesn't matter because once again we just seem to "shrug off" all negative news. If we want to really see how strong our economy and the stock market is here in the USA....then tell the gov to stop all money injection into the system immediately and then let's see what happens. It won't be pretty but our Prez will never allow that to happen as long as he's in office.
The market will climb higher this fall, and fall before, during, and after it climbs, and as always it will climb and fall a lot more than it consistently climbs or falls.
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