David Kelly, market strategist and managing director at J.P. Morgan Asset Management, spoke Tuesday about the outlook for Q2 in a webcast titled, "Q2 2011 Economic and Market Outlook: Out of Recession but Out of Sync."
While Kelly (left) expressed optimism regarding the U.S. economy, he also pointed out that if the healthier European countries within the euro zone fail to find a way to assist peripheral nations, those nations will be hurt. He also said that rising commodity prices are exerting more pressure on developing countries than on developed countries.
Among the subjects he discussed were the macroeconomic environment, conditions in the U.S., monetary policy issues, and the positioning of investor portfolios in a low-but-rising inflation atmosphere. Optimistic about the growth of the U.S. economy, he pointed to four straight quarters of growth in inventories after eight quarters in which they shrank.
Kelly warned of slow expansion in the housing market, but pointed to some growth in capital spending and in vehicle sales, although the latter, he added, was barely at replacement rate.