PHILADELPHIA (CBS) – The financial world recovered quickly after the S&P warned about the future of the ratings for United States credit.
The S & P report doesn’t faze one of PNC Bank’s chief investment strategists, Executive Vice President Keith Aleardi, who says the stock market can tell you more about the future.
“There is some correlation between an improving or healthy stock market and Americans interest in spending, and their own personal confidence. Now it’s more employment, interest rates, and a number of other variables that contribute to that. But certainly, a healthy stock market promotes a better economy.”
Aleardi does see the S & P statement may be forcing politicians to speed up deficit cutting
Area fund manager and consumer goods specialist Lori Wax has her own warning about the S & P.
“I would like to point out, not to be a bit of a skeptic here, but this was the ratings agency that had AIG rated AAA right? Had AIG rated AAA right before it imploded into the financial crisis? So maybe they’re trying to stay a little more ahead of the game now. But I don’t know if they have all the credibility in the world.”
Listen to extended interview…
Reported By Special Contributor Larry Kane, KYW Newsradio