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UBS: Upbeat US Data Has Finally Burst 'Negativity Bubble'

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By    |   Friday, 04 Mar 2016 03:05 PM


UBS strategist Julian Emanuel claims that better-than-expected U.S. economic are among the factors to finally popping of the global "negativity bubble."

He recently predicted to CNBC that stocks are poised to rally much higher as a result.

"Essentially, people were defensively positioned coming in to 2016," Emanuel, who serves as executive director for U.S. equity and derivatives strategy at UBS, recently told CNBC. "Then, all of a sudden, the numbers started to get a little bit better."

Emanuel also cited the Supply Management Manufacturing PMI, which is below 60 but still holding well above 45, otherwise known as "the danger zone," CNBC reported. "That data doesn't show expansion, but it's just a little bit better than what we're expecting. [From there] you get an outsized market reaction to the upside," said Emanuel.

To be sure, this week stocks have risen following reports that show the U.S. economy is doing fairly well, including data on construction spending and manufacturing.

Kate Warne, investment strategist for Edward Jones, said she expects continued job and economic growth for the U.S.

"The worries that we've been hearing recently about the economy sliding into recession aren't warranted," she told AP. Combined with low inflation rates, she said that's good news for investors.

For his part, one of the most famous investors of all time remains eternally bullish about the United States, and its economy, despite some rough patches.

Warren Buffett used his annual letter to Berkshire Hathaway Inc. shareholders to reject the dour economic outlooks polluting the presidential campaign.

The world's third-richest person and a revered investor, Buffett lambasted candidates who talk down the nation's economic future as "dead wrong" - an apparent jab at Republicans and front-runner Donald Trump.

Trump has repeatedly said the U.S. economy is in a "bubble" that he hopes will pop before he takes office. "I don't want to inherit all this stuff," he has said, Reuters reported.

Buffett said such concerns are overblown.

"For 240 years it's been a terrible mistake to bet against America, and now is no time to start," Buffett said. "The babies being born in America today are the luckiest crop in history."

(Newsmax wire services contributed to this report).

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UBS strategist Julian Emanuel claims that better-than-expected U.S. economic are among the factors to finally popping of the global "negativity bubble."
ubs, cnbc, stocks, invest
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2016-05-04
Friday, 04 Mar 2016 03:05 PM
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