Charles Schwab’s Liz Ann Sonders — who made what appear to have been very accurate calls on the start and end of the recent recession — says the U.S. economic recovery is now entering self-sustaining mode. “It’s more than just a ‘sugar high’,” Sonders tells Harlan Levy in an interview on Seeking Alpha. “This is a legitimate recovery, in many ways as a result of a lot of the traditional forces that kick in in recoveries. You get inventory rebuilding, which pushes up industrial production, which pushes up the need to hire. We’ve got very strong exports. We’ve got businesses […]
Fund manager Ken Heebner says he thinks the U.S. economy will continue to recover, regardless of what happens with Europe’s debt woes. “I think the American economy is not dependent on what happens in Europe,” Heebner tells CNBC. “The uptrend in the American economy, I think, is strong. I think the consumer has shifted decisively in March, and I think consumer spending is going to surprise on the upside meaningfully. … I think we’re going to see rising demand against the background of abnormally low inventories creating an accelerated rise in industrial production.” Heebner thinks the situation in Europe could […]
Author and Wharton professor Jeremy Siegel continues to be bullish on the market, saying he sees another 10% to 15% in gains for stocks by year-end. Siegel says that “extraordinarily strong” earnings and worldwide economic growth are behind his short- and medium-term bullish stance.
In his latest Forbes column, Ken Fisher reiterates his bullish stance on stocks, and offers several reasons why he’s optimistic. Among Fisher’s bullish points: “The GDP-weighted global yield curve (spread between long-term and short-term government interest rates) is steeper than it has been since the 1960s.” That, he says, means increased future lending for banks, and is an indicator that “has historically been a great market-timing tool.” “The spread between ten-year Treasury yields and the average cost of credit default swaps has narrowed to zero.” Fisher says that’s a sign that the economy “is keyed to expansion and credit demand […]
MarketWatch columnist and money manager Jon Markman says that while many investors don’t believe it, the rally still has plenty of room to run — and that corporations will keep it rolling even if individual investors don’t. Markman points to the government’s massive stimulus plan, record low interest rates, and the large amounts of money being pumped into corporate bonds as reasons for his optimism. “If the public doesn’t get on board with this bull market, the companies are going to do it themselves, both by buying other companies … and buying back their own stock,” he says. He thinks […]