Oct. 29--MORAINE -- While the nation's economy has emerged from recession, any upcoming rebound likely will be modest, an investment strategist for PNC Wealth Management said Wednesday, Oct. 28.

Economies typically bounce back with a force similar to their decline, said William Stone, senior vice president and investment strategist for PNC Wealth Management. But Stone, the keynote speaker for National City Bank's economic forecast luncheon, said that while he believes gross domestic product grew in the third quarter, this expansion will be "subpar" because of lingering issues in the housing and other sectors.

PNC Wealth Management is part of PNC Financial Services Group, which acquired National City Corp. in 2008. National City bank branches in Dayton will continue to operate under that name until next year.

In other remarks, Stone said he doesn't look for inflation automatically to accompany any rebound, in part because the recession idled so many workers and so much manufacturing capacity. If the Federal Reserve winds down the various programs it has launched over the last year to avert economic collapse, then Stone said the country can avoid inflation.

In addition, Stone said he looks for stocks to make further gains this year. While many companies haven't seen year-over-year sales growth, they have cut expenses far more aggressively than in past recessions, which has helped their overall performance. But if the economy continues expanding, more companies also should see gains in fourth-quarter sales, he said.

Another potential boost for the market would be the trillions of dollars that have been parked on the sidelines in less aggressive investments, but that could start making their way into stocks as investors look for higher returns, he said.

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