Deutsche Bank's Slok: Stocks Will Rise Until Next Recession

Monday, 25 Aug 2014 06:49 PM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
While the official Deutsche Bank view is that the S&P 500 will slip 7.4 percent for the rest of the year to 1850, Deutsche economist Torsten Slok apparently thinks otherwise.

The index closed at 1997.92 Monday after hitting a record high of 2,001.95 earlier in the day. 

"I believe the stock market will continue to go up until we get a recession. And we are nowhere near entering a recession," he wrote in a commentary obtained by Business Insider.

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

"Recessions happen because of a bubble bursting in capital expenditure (as we saw in 2000) or because of a bubble bursting in consumption (as in 2008) or when monetary policy is too tight." 

None of that is occurring now, Slok said. "If anything, we are seeing too little capex and consumption." Retail sales were unchanged in July, the worst showing since March.

"Some wobbles" will arise when the Fed finally raises interest rates, but that "won't derail the current expansion," Slok wrote. "That's why I expect equities to continue to rise steadily over the coming years."

Chris Hyzy, chief investment officer of Bank of America's U.S. Trust unit, is optimistic about stocks, too. He thinks the bull market that began in March 2009 and has seen the S&P 500 nearly triple has another 15 years to go.

"I know it sounds easy to say," Hyzy told CNBC. "This is an elongated business cycle. You're going to have fair value through most of it. You're not going to get a lot of overvaluation."

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

Related Articles:

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Crackdown on Apple in Ireland Opens Front in Tax Avoidance War

Tuesday, 30 Sep 2014 18:41 PM

The European Commission's crackdown on the deal between Irish tax authorities and Apple Inc. marks an expansion in the g . . .

Drug, Medical Device Firms Pay Billions to US Physicians, Hospitals

Tuesday, 30 Sep 2014 17:33 PM

U.S. doctors and teaching hospitals received $3.5 billion from pharmaceutical companies and medical device makers in the . . .

Stocks Fall as Global Shares Cap Quarterly Slide; Oil Sinks

Tuesday, 30 Sep 2014 16:37 PM

U.S. stocks fell, with global equities capping the worst quarterly drop since 2012, as energy producers sank with the pr . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved