NEW YORK (TheStreet) -- The stock market may rally in the fourth quarter, driven by corporate earnings and investors' optimism of a rebounding economy, said Robert Parker, a senior adviser and investment-committee member at Credit Suisse, in an interview with Bloomberg.
Investors ought to consider buying high-dividend, large-cap companies in economies growing quickly, Parker said.
Among the most attractive emerging markets are China and Brazil, which have underperformed this year, Parker said. In Europe, stocks in Germany and Scandinavian countries may fare the best, he said.
The are four catalysts for a stock-market rally, Parker said. Two are investors' receding fears of a double-dip recession and deflation, he said. Economic signs point to an improvement in global economies, he said.
A third is that corporate earnings will probably be consistent with the "good numbers" of the second quarter.
And the fourth catalyst is the fact that a record amount of money is parked in short-term or low-risk securities in lieu of stocks. That money will be put to use in equities once investor optimism returns, Parker said.
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