Swanson conceded that corporate earnings were sluggish in the first quarter of this year, but he noted a strange development: The average American hasn’t been buying stocks even though the economy has been expanding for years.
Most Wall Street analysts have been reducing their earnings estimates, he said, adding, “I think these revisions may be too radical.”
The consumer eventually could become a major factor in helping the economy and the stock market grow at a faster pace, Swanson said.
“If we look at consumer discretionary, utilities and technology—the sectors that tend to do better 10 to 12 months after the price of oil falls—then we could see a pickup in earnings and economic activity later in 2015,” he said.