“A surprisingly healthy jobs report for February could spark a longer-term rally in the stock market, as still-cautious investors would open up to the notion that the economy is finally on the mend, says Goldman Sachs Asset Management Chairman Jim O’Neill.
Unemployment figures have surprised on the upside for December and January.
“I think after the two past highly positive surprises, a third one coming up this Friday, I would have thought, would have made a lot of people start to rethink some of their cautiousness about the U.S.,” O’Neill tells CNBC.
“If we get another positive surprise, that raises the possibility of another material rally in the S&P before we get into some of the usual late spring, early summer issues.”
Oil prices will serve as the main headwinds battling markets, as the European debt crisis will work itself out, O’Neill adds.
Prices tend to spike in spring and early summer.
“Most of the other concerns people talk about, particularly the ones related to Greece, I find a bit tedious. Markets come through all those challenges pretty easily,” O’Neill says. …”
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