The bullish run of the U.S. markets spanning across the last several months has investors in mixed sentiment. In August, the Dow has seen the greatest growth of the main indices, up nearly 3%, with the S&P 500 following at roughly 2%.
While some have shared a more bearish outlook for the market, other strategists, such as Dan Suzuki of Richard Bernstein Advisors and Jodie Gunzberg, managing director at S&P Dow Jones Indices, remain optimistic.
The two strategists sat down on CNBC’s “Squawk Box” to discuss the markets and which fundamentals they’re watching. “We’ve had four consecutive months of positive returns. The market looks like, maybe next week, we might even make new all-time highs,” says Suzuki.
Suzuki warns investors to shy away from basing their market outlooks strictly on President Trump’s statements, such as those aimed towards Turkey and China, and to rather focus on market fundamentals.
Suzuki also discusses the return of pricing power with U.S. companies in the wake of the ongoing trade war.
“Pricing power is back… whether you’re talking about machinery… beverages… diapers and toilet paper, prices are going up across the board, and they’re not just in areas where their demand is strong, but they’re actually happening in areas where demand is weak,” says Suzuki.
Richard Bernstein Advisors is a participant in the ETF Strategist Channel.