Will the market climb higher this fall?

Even after a sloppy summer, stocks look like they will keep grinding up, 2 investing pros say.

By MSN Money Partner Aug 15, 2014 1:18PM
Image: Stock market © Digital Vision/SuperStockBy Matthew J. Belvedere, CNBC

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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Tags: MWMT
39Comments
Aug 16, 2014 1:47PM
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Yes!!!! I sure as hell have been enjoying the ride!
Aug 16, 2014 10:34PM
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THE MARKET WILL RISE TILL THE NEXT RECESSION HITS IN ONE OR TWO YEARS.

 What else is new.?

Aug 17, 2014 8:40AM
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Does it really matter?  It will if they want and it won't if they don't.
Aug 17, 2014 12:44PM
Aug 15, 2014 1:39PM
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"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.

Aug 16, 2014 11:03AM
Aug 17, 2014 12:55PM
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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.    

Aug 17, 2014 7:20PM
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sharpton and jackson should be arrested for in sighting a riot!
Aug 15, 2014 3:52PM
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Will Russia invade eastern Ukraine and the Republicans win control of both Houses?
Aug 17, 2014 1:21PM
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The Fed will keep on with the give away of money to the banks at zero interest to keep the market going. The tax payers will pay for this bull from the Fed.
Aug 17, 2014 10:20AM
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I will say this one last time.  The "markets" do not have one thing to do with anything.  Nothing.  I travel all the time and my eyes see what is going on.  It is not pretty.  We have an "underground" empire that is expanding at a rapid pace.  I am not talking the obvious as in drugs and illegals...the "displaced" and "given up hope" of all ethnicities.  We are on the verge of anarchy.  This Missouri clash we are witnessing now is only a precursor of what is coming.  The "black" neighborhood should get silent and be silent, quickly.  Sharpton and Jackson should be disemboweled by the black neighborhood....are they that entirely ignorant, or are they Americans.  They are causing a fight that they will never win.  Have a nice weekend, all.
Aug 17, 2014 10:14PM
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I've investing in GITMO- the soon-to-be home for loser grubbers who trashed America by financial wrangling and tyranny. I hear they're building a huge meat grinder to turn all that wasted humanity into fertilizer. Arrogant egomaniacs are rich in core minerals and baloney... both good for nurturing exploited soil meant for free enterprise. Wall Street... R.I.P.
Aug 17, 2014 8:55PM
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It all depends on weather Russia invades Ukraine, the Fall elections and if an asteroid destroys us.
Aug 17, 2014 5:54PM
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ISIS will soon take care of our Obamanomics....
Aug 15, 2014 4:24PM
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ha ha ha ha next time better think twice
Aug 17, 2014 1:16PM
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Keon   Fairly valued    Yea right
Aug 17, 2014 2:39PM
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Increasing home prices are NOT a good sign for an economy growing as slowly as ours!
Aug 17, 2014 6:06PM
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Dreamers live with the "stock racket" until it hits them in the head, then they blame everyone else
GET A REAL JOB!
Aug 15, 2014 2:29PM
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There won't be any markets this fall. What we really need is an America this fall. You know, one that works for all, not gambles and has cocaine dust coming out of it's nostrils all the time. 
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