The Standard & Poor's 500 Stock Index will climb by 22 percent as the global economy emerges from its recession buoyed by improving consumer spending and housing markets, according to investor Barton Biggs.
Japanese stocks will also be attractive buys also on expected improved consumer spending there as well as increased exports to China.
“I’m still bullish,” Biggs, who runs New York-based hedge fund Traxis Partners, told Bloomberg radio.
“We’re going to have a pretty strong recovery in earnings both this year and next year.”
In the United States, cost cuts at companies will eventually lead to better earnings. In Japan, elections are scheduled to take place next month and the new government will inherit an economy that is ripe for recovery.
“They’re going to really try to stimulate consumer spending,” Biggs said of the new Japanese government.
While the next administration in Japan may look forward to growth real soon, the current administration in the United States is doing so today.
President Barack Obama said the country is witnessing the "beginning of the end of the recession" as he defended his economic policies at a town hall meeting in North Carolina.
"The market is up and the financial system is no longer on the verge of collapse. We're losing jobs at nearly half the rate we were when I took office six months ago,” Obama said.
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