U.S. stocks prices could shoot up 20 percent this year, with technology stocks leading the way, says Barton Biggs, head of the New York hedge fund Traxis Partners LP.
“I’m betting the next move in the U.S. market is going to be up 15 to 20 percent,” Biggs says.
“I would just point out that the world is having a strong economic recovery, and so is Europe,” he told Bloomberg.
European policymakers announced a $1 trillion aid package to halt Europe’s debt problem.
Stock and currency markets rallied on the news.
“There are plenty of opportunities in the U.S.,” says Biggs.
“It’s by no means a foregone conclusion that we have a crisis every three years and, my God, that the world is coming to an end. I don’t believe that’s what’s happening at all.”
Debt-ridden Greece has grabbed headlines for threatening the stability of the European Union, as fears have risen that its problems will spread to other countries such as Spain and Portugal.
The European Union and the IMF have arranged a $140 billion loan package for Greece alone.
Greece reportedly managed to pay off its creditors Wednesday — warding off bankruptcy in the nick of time — by using billions of euros from the EU-led rescue package aimed at containing the debt crisis.
Greek finance ministry sources said the government redeemed 8.5 billion euros ($10.43 billion) in expiring 10-year state bonds, which it was unable to raise without outside assistance as wary investors have sent Greek borrowing costs sky-high. the Associated Press reported.
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