Bradley C. Tank has spent his career as a bond man, but now he's formulated some interesting stock market predictions. The portfolio co-manager at Strong Funds said the market likely will see another 10% drop in the next 12 months.
Although he oversees Strong's fixed-income investment committee, Mr. Tank eagerly gave attendees at last month's Mid-Sized Pension Management Conference in Chicago his views on the stock market.
He said the current focus on day-to-day statistics and economic reports will not be part of what drives the U.S. stock market of the future. He reminded his audience that only a year ago, investors were interested mainly in Asia's economic problems.
In looking at the U.S. economy and studying labor statistics, he expects consumer demand to slow so much that the Federal Reserve won't see a need to increase interest rates. He also predicts the few stocks that now dominate the indexes will lose some of their luster and the market will be broader and healthier for it.
He's still bullish on bonds, believing there will continue to be a place for them in retirement plans because of their ability to decrease portfolio risk and boost overall portfolio income.