Schwab's (SCHW) Kleintop Discusses the Market, Potential Volatility on BloombergTV

Jeffrey Kleintop, chief global investment strategist at Charles Schwab (SCHW), joined BloombergTV's 'Bloomberg Markets' to explain current market trends and volatility moving forward.
By Giovanni Bruno ,


NEW YORK (TheStreet) --Chief global investment strategist at Charles Schwab (SCHW), Jeffrey Kleintop, joined BloombergTV's "Bloomberg Markets" this afternoon to discuss current market trends, and potential volatility moving forward.

With no shortage of global risk and uncertainty, the market has still exhibited a steady rally, and Kleintop says that earnings explain that phenomenon.

"It all comes back to earnings. The market has been behaving differently in the last few months since earnings revisions bottomed, then they did prior to that, "Kleintop said.

Additionally, he believes that events like Brexit, the European terror attacks, or the attempted coup in Turkey would have had a much more substantial impact on the markets had they happened a year ago.

"The fact is since earnings revisions bottomed, the market has taken a lot of these events in stride and will continue to do so if revisions continue to head to the upside," he explained.

Despite the fact that we have seen several companies beat analyst expectations, BloombergTV's Vonnie Quinn said that we are amidst an earnings recession, and questioned Kleintop if we have seen an end.

"It's early to say whether that's really ended or not," he noted. Citing several sectors that have seemed to have hit their bottom, and are becoming more stabilized.

"I think it suggests that maybe we've seen the worst in terms of the deceleration in profits, but they're not pointing to much acceleration either," he added.

Kleintop commented on whether or not these current market trends are signs of a calming market, or simply the calm before the storm.

"Count on another storm," h said, pointing to the implications that the upcoming Italian referendum, U.S. presidential election, and continued questions surrounding any recovery in the energy sector, will have.

"All of those will contribute to some volatility here in the second half," Kleintop told BloombergTV.

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