ablin

Gold will do well if the consumer-price index rises at least 3% over the next three years, argues Mr. Ablin.

While equity valuations were looking reasonable, Mr Ablin said, he preferred cash and short-term government debt.

Ablin said he is "bullish on the markets for the next 12- to 18 months, " particularly U. S. high-yield corporate bonds.

"I'm hopeful that this issue can be resolved quickly, " Ablin said.

The technology sector especially is the leading sector in the broad market and its performance is impacting the rest of the market.

'Investors must be more willing to employ cash as a legitimate asset class, ' says Mr. Ablin.

Harris's small-stock analyst is leery of the group, feeling it has become expensive, Harris's Mr. Ablin says.

Harris Private Bank's Jack Ablin says deep recessions generate a vicious circle between job losses and reduced economic activity.

"They are sweeping a lot of issues under the rug and hoping that the economy can grow its way out of the problems, " says Ablin.

'There is a sense of desperation in the capital raising these days, ' Mr. Ablin says.

"The lack of jobs is a real problem, " said Mr Ablin.

Investors like Mr Ablin are therefore watchful.

Banks call it "extend and pretend, " says Ablin.