Sam Zell, the real-estate icon whose name has become synonymous with vulture investing, apparently isn’t afraid of momentum investing either.
While the stock market already has soared more than 70 percent from its lows last March, Zell says more gains may be on the horizon.
“The market is not overbought,” he says.
“It’s maybe less than or even on par of where it ought to be. If the recovery continues, and there’s less interference in the economy by the government, that bodes well for the market improving,” he told Bloomberg.
As for the economy, “Conditions are getting better,” Zell said. Gross domestic product, or GDP, expanded 5.9 percent in the fourth quarter.
“But there’s a lot of uncertainty, and the real question is, 'Can confidence return enough so that what you call the green shoots or whatever would continue forward?'” Zell said.
He famously labeled himself a grave dancer for his vulture investing style, and says he still favors distressed debt over other U.S. assets.
“Willie Sutton said it all when he was asked why he robs banks,” Zell said. “That’s where the money is. We’re in distressed debt because that’s where the value is.”
Goldman Sachs strategist Abby Joseph Cohen is bullish on U.S. stocks too. She says the Standard & Poor’s 500 Index will likely end the year at 1,250 to 1,300. The index is currently at about 1,166.
“We don't think it (the stock market) has moved too far at this point," she told CNBC.
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