News / USA

Economist Says Market Jitters Exaggerated

Chief economist at Avalon Partners Peter Cardillo
Chief economist at Avalon Partners Peter Cardillo

Multimedia

Despite falling 140 points before the market opened, because of disappointing corporate earnings, the Dow Jones Industrial Average closed more than half a percent higher on Tuesday.  A Wall Street economist says the mixed signals reflect an exaggerated unease about the slow pace of recovery in the U.S. and around the world.  But he says the global economic recovery is in no danger of jumping off the tracks.

Investor pessimism was high even before markets opened in the US.
A Commerce Department report showing that new home construction fell to an eight-month low in June - only added to the unease.

But key indexes rose sharply as the day wore on.

Chief economist Peter Cardillo at Avalon Partners blamed uncertainty for the market volatility.

"The market is basically focusing on the fact that the economy has slowed," said Peter Cardillo. "The question is how slow is slow and what does it mean for future earnings going forward. "

Despite what he calls overblown fears of a double-dip recession, Cardillo predicts the U.S. economy will grow between two and a half to three percent for the second half of the year.  

As for worries about a larger debt crisis in Europe:

"The EU is certainly not in danger of disintegrating," said Cardillo. "I don't believe that the euro is in trouble.  There are problems but they are short-term problems and they've been over-exaggerated by the market."

And despite new signs that China's economy is slowing down, Cardillo says the rest of the global economy is doing just fine.

"I think Asia is doing well, South America is doing well and believe it or not, there's certain parts of Africa that have kicked in, so the global economy is doing fine," he said.

But Cardillo says that's not to say that all is well on the financial front.  He is worried about the impact Wall Street Reform will have on big investment firms, once the president signs the bill into law on Wednesday.

With U.S. unemployment near double digits, Cardillo cautions the Obama administration to tone down its rhetoric against Wall Street - something political analysts say is unlikely with U.S. mid-term elections only months away.

You May Like

Reports of Mass Murder on Mediterranean Smuggler’s Boat

Boat sailed from Libya with 750 migrants aboard and arrived in Italy with 569 More

Video New Thailand Hotline Targets Misbehaving Monks

Officials say move aims to restore country’s image of Buddhism, tarnished by recent high profile scandals such as opulent lifestyle, drug and alcohol abuse, as well as child sex abuse More

Study: Dust from Sahara Helped Form Bahama Islands

What does the Sahara have in common with a Caribbean island? Quite a lot, researchers say More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Astronauts Train in Underwater Labi
X
George Putic
July 25, 2014 7:25 PM
In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.
Video

Video Not Even Monks Spared From Thailand’s Junta-Backed Morality Push

With Thailand’s military government firmly in control after May’s bloodless coup, authorities are carrying out plans they say are aimed at restoring discipline, morality and patriotism to all Thais. The measures include a crackdown on illegal gambling, education reforms to promote students’ moral development, and a new 24-hour phone hotline for citizens to report misbehaving monks. Steve Sandford reports from Bangkok.
Video

Video Virtual Program Teaches Farming Skills

In a fast-changing world beset by unpredictable climate conditions, farmers cannot afford to ignore new technology. Researchers in Australia are developing an online virtual world program to share information about climate change and more sustainable farming techniques for sugar cane growers. As VOA's Zlatica Hoke reports, the idea is to create a wider support network for farmers.
Video

Video Airline Expert: Missile will Show Signature on Debris

The debris field from Malaysia Airlines Flight 17 is spread over a 21-kilometer radius in eastern Ukraine. It is expected to take investigators months to sort through the airplane pieces to learn about the missile that brought down the jetliner and who fired it. VOAs Carolyn Presutti explains how this work will be done.
Video

Video Treatment for Childhood Epilepsy Heats up Medical Marijuana Debate

In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Airbus Adds Metal 3D Printed Parts to New Jets

By the end of this year, European aircraft manufacturing consortium Airbus plans to deliver the first of its new, extra-wide-body passenger jets, the A350-XWB. Among other technological innovations, the new plane will also incorporate metal parts made in a 3-D printer. VOA's George Putic has more.
Video

Video AIDS Conference Welcomes Exciting Developments in HIV Treatment, Prevention

Significant strides have been made in recent years toward the treatment and prevention of HIV, the virus that causes AIDS. This year, at the International AIDS Conference, the AIDS community welcomed progress on a new pill that may prevent transmission of the deadly virus. VOA’s Anita Powell reports from Melbourne, Australia.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.

AppleAndroid