The dollar and U.S. stocks will continue their rallies in 2010 amid economic recovery around the world, says Barton Biggs, managing partner of hedge fund firm Traxis Partners.
Stocks have soared almost 70 percent since March, and the dollar has rebounded from its November lows.
“History would suggest that after such a severe economic shock like we’ve just had that the odds are that we’re going to have a pretty good burst of growth in 2010, 2011,” Biggs told Bloomberg.
“I don’t see any reason why we can’t have a further rally in the dollar and a further rally in stocks. And my guess is that the next move in both could be on the order of 10 percent.”
Biggs sees good economic news ahead.
“The U.S. economy is still in a recovery mode,” he said.
“If anything, that recovery is gaining momentum.”
The outlook is rosy overseas too, Biggs says.
“In other economies around the world, particularly the developing countries and also the ones in Europe, things are improving. There’s a chance we can get into a virtuous circle.”
Joseph Keating, chief investment officer of private asset management at RBC Bank, also is bullish on the economy and stocks.
“Investors want to see that the recovery in the economy is for real, that it’s going to translate into earnings growth,” he said.
“We think that will happen . . . (and) push stock prices higher.”
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