“I think we go below the double dip,” Lekas told CNBC. “By year-end, we drop below 6,300 on the Dow and by 2011, we’re at 4,200.”

Lekas said although Monday's ISM services indexwas “neutral,” the unemployment number was at 785,000 last month and that number is expected to worsen.

“So 26 to 27 million people who are out of work isn’t going to help the economy,” he said. “And until that number gets better, we will not see a recovery.”

Lekas told investors to sell equities, buy short-term fixed income, stay with high qualitynames and stay safe.

CNBC Data Pages:

In the meantime, Cuggino said although there are risk factors and uncertainty in the markets, earnings are going to continue to improve.

“There’s also a tremendous amount of liquidity out there that will be used to prime economic growth going forward,” he said.

Cuggino recommended sticking with equities—“especially U.S. multinationals who take advantage of worldwide growth.” He also likes the financial services, biotechnology, pharmaceuticals and technology sectors.

More Market Intelligence:

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Recommendations:

Cuggino Likes:

FedEx

Hewlett-Packard

Freeport-McMoRan

Lekas Likes:

3-Month T-Bill

6-Month T-Bill

2-Yr T-Note

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Disclosure:

No immediate information was available for Cuggino or Lekas.

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