At the same time, he’s not as pessimistic as Wall Street on first quarter earnings. Keon, who started his career at an earnings forecasting firm, believes the reports will come in better than expected.
“The consensus now is to negative numbers. We’ll probably do a little bit better than that just because we almost always do,” he said. “But I still guess that we get pretty close to zero earnings growth.”
The S&P 500 is on pace to have its best start to the year since 1998 and best quarter in a decade. On Tuesday, the index broke a two day losing streak. It’s now up more than 12 percent so far this year.
“We’re back to about where we were 14 months ago on the S&P 500. I think we can go in either direction here,” said Keon, who believes the market is in a consolidation phase due to the year’s historic run.