Respected money manager Mario Gabelli says the stock market has achieved stability, and he's bullish on the future.
While the economy isn't growing yet, "things are getting better," he said in an interview with Bloomberg TV. "They've stopped decelerating."
And, that's helped the Standard & Poor's 500 Index rise 36 percent since early March. "The stock market is finding a place of equilibrium," says Gabelli, chief executive of GAMCO Investors.
The economy will soon benefit from the $787 billion stimulus program, he says.
Speed bumps still exist for the economy, such as the auto industry's weakness and the recent rise in interest rates and oil prices, Gabelli points out.
But, "things are getting better," he says.
Gabelli, naturally, makes the case for active rather than passive investing. "Whether the Dow is at 8,200 or 8,300, you go back 12 years, and you haven't made any money if you owned an index," he notes.
"So active management, looking for good ideas, continue to be a sound way to invest."
Bottom line: "We think that over the next 10 years the market will grow 7 percent to 9 percent," Gabelli says. "We'll do 12-14 (percent). We're finding bargains in the companies where we're looking."
Many disagree with him on the stock market's path. Economist Gary Shilling, for example, sees the S&P 500 dropping about one-third from current levels. "I don't think we're through with this sell-off in stocks," he tells Yahoo! Finance.
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